V CHAMBER OF COMMERCE OF THE UNITED STATES f ' v . „• < . > i , f \ i. C M. A. MAR 61964 Case Studies j in COMMUNITY DEVELOPMENT Compiled by S. Howard Evans Construction and Community Development Department CHAMBER OF COMMERCE OF THE UNITED STATES OF AMERICA Washington, D. C. Library of Congress Catalogue Card Number 63 - 21033 TABLE OF CONTENTS 307, A C 3 Ctrjp 5 4 , o < C*— PAGE FOREWORD 1 CHAPTER I A NEW PROGRAM IN COMMUNITY DEVELOPMENT . 3 CHAPTER II ESSENTIAL PRINCIPLES AND PROCEDURES . 13 CHAPTER III STUDYING COMMUNITY DEVELOPMENT PROCEDURES. 17 CHAPTER IV ORGANIZING LOCAL PROCEDURES. 25 CHAPTER V MAKING BASIC ASSUMPTIONS . 31 CHAPTER VI SELECTING THE PRIORITIES COMMITTEE . 39 CHAPTER VII THE FIRST CITY-WIDE MEETING. 45 CHAPTER VIII IDENTIFYING CASE STUDY AREAS . 53 CHAPTER IX SELECTING RESOURCE PERSONS. 57 CHAPTER X METHODS OF CASE STUDY ANALYSIS. 61 CHAPTER XI THE ANALYSIS OF CASE STUDY AREAS. 65 Category A — Adjustment to Location and Natural Resources . 67 Case Study Area No. A1 - Land . 69 Case Study Area No. A2 - Water. 73 Case Study Area No. A3 - Pollution - Air, Water, and Land. 77 Case Study Area No. A4 - Climate. 87 Case Study Area No. A5 - Agriculture. 91 Case Study Area No. A6 - Sewers and Drainage. 95 Case Study Area No. A7 - Port and Water Transportation. 97 Case Study Area No. A8 - Fisheries. 101 Case Study Area No. A9 - Gas . 103 Case Study Area No. A10 - Electricity. 105 Case Study Area No. All - Communications. 107 Case Study Area No. A12 - Air Transportation. Ill Case Study Area No. A13 - Railroads. 115 Case Study Area No. A14 - Highways . 117 Case Study Area No. A15 - Motor Truck Transportation. 119 Case Study Area No. A16 - Inter-City Bus Transportation. 121 Case Study Area No. A17 - Tourist Activities. 123 Case Study Area No. A18 - Convention Promotion. 127 Case Study Area No. A19 - Religious Resources . 129 Case Study Area No. A20 - Recreational Resources . 133 Case Study Area No. A21 - Cultural Resources . 137 Category B - Industrial Development Section . 143 Case Study Area No. B1 - Is the Business Climate Conducive To Further Industrial Development?. 145 Case Study Area No. B2 - Why Industries Locate. 147 Case Study Area No. B3 - Competitive Industrial Position. 149 1 PAGE Case Study Area No. B4 - Condition of Existing Plant and Equipment. 153 Case Study Area No. B5 - Possibilities of Expanding Existing Plant Facilities . 155 Case Study Area No. B6 - Industrial Labor Supply. 157 Case Study Area No. B7 - Wage Rates. 161 Case Study Area No. B8 - Resources for Industrial Expansion. 163 Case Study Area No. B9 - Need for an Economic Base Study as a Foundation on Which to Build a Better Industrial Position. 165 Case Study Area No. BIO - What Kind of Promotion Should be Used to Improve Industrial Position? . 171 Case Study Area No. Bll - Should There be an Industrial Development Program? . 175 Category C - Commercial Development Section. 177 Case Study Area No. Cl - A Definite Pattern of Commercial Development. 179 Case Study Area No. C2 - The Central Business District. 181 Case Study Area No. C3 - Suburban Shopping Centers . 191 Case Study Area No. C4 - Strip and Spot Commercial Development .. . 193 Case Study Area No. C5 - Can Commercial Facilities be Provided as Needed?. 195 Case Study Area No. C6 - How Should Commercial Development be Promoted and Controlled?. 197 Category D - Comprehensive Planning Section . 199 Case Study Area No. D1 - What Planning is Required to Insure Sound and Orderly Growth . 203 Case Study Area No. D2 - How Adequate is the Existing Planning Mechanism for our Area?. 207 Case Study Area No. D3 - How Adequate is the Land-use Plan? . 211 Case Study Area No. D4 - How Adequate is the Transportation Plan? 215 Case Study Area No. D5 - How Adequate is Planning for Community Facilities? . 219 Case Study Area No. D6 - The Public Improvements Program. 221 Case Study Area No. D7 - Zoning Regulations . 223 Case Study Area No. D8 - Subdivision Regulations . 225 Case Study Area No. D9 - Neighborhood Analyses. 227 Case Study Area No. DIO - Planning for Traffic Control. 231 Case Study Area No. Dll - The Threat of Slums and Blight. 233 Category E — Housing Section. 237 Case Study Area No. El - Condition of Existing Housing. 241 Case Study Area No. E2 - How Important is a Housing Code?. 243 Case Study Area No. E3 - Relocation of Families. 247 Case Study Area No. E4 - Is More Public Housing Required? . 251 Case Study Area No. E5 - The Future of Private Housing Construction. 253 Case Study Area No. E6 - How Important is Local Tax Policy to Housing? . 255 Category F — Urban Renewal Section. 257 Case Study Area No. FI - Is Urban Renewal Needed?. 259 Case Study Area No. F2 - Why is an Urban Renewal Plan Necessary? . 263 Case Study Area No. F3 - Who Should Formulate the Urban Renewal Plan for a Given Project?. 267 Case Study Area No. F4 - The Identification of Project Areas. 269 ii PAGE Case Study Area No. F5 - Feasibility of Renewal Projects. 273 Case Study Area No. F6 - The Land Acquisition Plan . 277 Case Study Area No. F7 - The Land Reuse Plan. 281 Case Study Area No. F8 - Project Facilities Plan. 287 Case Study Area No. F9 - Project Financing . 289 Case Study Area No. F10 - What Place Should Redevelopment Have? . . 295 Case Study Area No. Fll - How Can Needed Rehabilitation be Accomplished? . 301 Case Study Area No. F12 - Execution of the Urban Renewal Plan. 307 Case Study Area No. F13 - What is the Place and Importance of the Redevelopment Authority?. 309 Category G — Local Government Section . 311 Case Study Area No. G1 - Administration. 313 Case Study Area No. G2 - Stabilizing the Principal Sources of Revenue 317 Case Study Area No. G3 - The Problem of Homestead Exemption .... 321 Case Study Area No. G4 - New Sources of Current Income. 325 Case Study Area No. G5 - Capital Improvements Financing. 327 Case Study Area No. G6 - Improving Assessment Practices. 329 Case Study Area No. G7 - Special Assessment Procedures. 331 Case Study Area No. G8 - Police . 333 Case Study Area No. G9 - Fire. 335 Case Study Area No. G10 - Public Health . 339 Case Study Area No. Gil - Health and Medical Care Facilities. 343 Case Study Area No. G12 - Public Works . 347 Case Study Area No. G13 - Parks and Beautification. 351 Case Study Area No. G14 - Recreation and Playgrounds . 353 Case Study Area No. G15 - Welfare and Related Social Services. 355 Case Study Area No. G16 - Educational Services . 359 Case Study Area No. G17 - Higher Education. 365 Case Study Area No. G18 - Library Development . 367 Case Study Area No. G19 - Mass Transportation and Parking. 372 Case Study Area No. G20 - Annexation . 375 Case Study Area No. G21 - Metropolitan Government. 377 Case Study Area No. G22 - Does Need for More Home Rule Exist?. . . . 379 Case Study Area No. G23 - Citizen Participation Process. 381 CHAPTER XII THE CITIZEN PARTICIPATION PROCESS. 387 CHAPTER XIII THE PRIORITIES COMMITTEE REPORT. 391 CHAPTER XIV THE SECOND CITY-WIDE MEETING. 399 CHAPTER XV COMPLETING THE PROGRAM OF WORK. 407 CHAPTER XVI IMPLEMENTING AND REVISING THE PROGRAM OF WORK 411 FOREWORD This book records experiences in community development which may help change the social sciences as atomic energy has helped transform the physical sciences. These experiences, in cities of varied sizes and locations, demonstrate a definite "breakthrough" in social problem solving. The traditional approach to community development has been to wrap up a particular prob¬ lem, with all its attendant circumstances and make its solution the single assignment of some one group or agency. This has resulted in some excellent descriptions of urban conditions which are both complex and confusing. In many instances sound recommendations for action have also been produced. But the traditional approach has not combined description and recommendations with decisions and action in ways which assure the constructive growth and development of communities. The case studies in this book acquire significance from a completely different approach to urban problem solving. They are based on the assumption that each important problem in com¬ munity development is deeply interwoven with so many other problejns that no single agency or organization has the capacity to deal effectively with all its aspects. The case studies, therefore, break down each problem into a series of parts and describes a series of steps each of which is to be taken separately by persons with special qualifications and all of which are to be coordinated so they produce a unified and complete solution. This procedure helps create a new concept of how the division of labor should be organized within the social sciences. It suggests that no one group or interest should be permitted to con¬ trol the entire problem solving process. The procedure involves many more persons than can participate directly and effectively under traditional practices. It bridges the gap between planning and implementation. The case studies also describe procedures which help create common denominator under¬ standings and agreements among the people. A need for better understanding exists in most com¬ munities. If people generally can agree on courses of action which permit diverse interests to move forward together, there are few limits on what their society can accomplish. Without agreement there can be little hope for progress. This book describes two different but compatible procedures for producing better under¬ standing. One involves use of the Citizen Participation Process — a mechanism independent of any formally established policy-making machinery—which enables the people to make their own decisions and compel action on selected problems. The other procedure involves mobilization of the resources of an entire community to identify problems, to assemble and analyze pertinent facts, to establish priorities and to build understanding and support for action. Use of the case study method to study partial problems may have a significance of its own. Ordinarily, the case study method is used to describe a given set of conditions, to test these con¬ ditions against some standard measurement or principle, and to reach a recommendation or de¬ cision about what should be done. The recommendation or decision is dictated largely by the circumstances. What is right in a specific situation may have to be reversed or modified if con¬ ditions change. Because conditions are changing constantly, so many different decisions have been made and precedents established that case study reports may have lost some of their value. Case studies reported in these pages have a very different orientation which may increase their usefulness. They are not concluded with a recommendation or decision. They present sets of facts, an analysis of these facts, and suggest alternate courses of action which may be followed to provide a solution. Reports on case study areas contained in Chapter XI are but one part of the procedure which must be completed before any solution is possible. A decision looking toward solution of the problem is not made until the extent of public understanding and support is deter¬ mined conclusively. Emphasis is averted from the decision itself and concentrated on the under¬ standings and agreements which make the decision workable. This procedure may prove to be one of the essential instruments of democratic survival. 1 This book is designed for use in conjunction with the seven pamphlets of the Community Development Series ,* Basic Decisions in Community Development .** and the Leaders' Guide, How to Create a Program of Work for Community Development . *** * The Community Development Series , $.50 per pamphlet, $3 for set of seven; from the Chamber of Commerce of the United States, 1615 H Street, N. W., Washington 6, D. C. ** Basic Decisions in Community Development , from the Chamber of Commerce of the United States, 1615 H Street, N. W., Washington 6, D. C. *** How to Create a Program of Work for Community Development . $.50; from the Chamber of Commerce of the United States, 1615 H Street, N. W., Washington 6, D. C. 2 Chapter I A NEW PROGRAM IN COMMUNITY DEVELOPMENT In three short months, the City of Hallandale, Florida, population 10,483, established a new record for initiating and completing a program of work for community development. Originated exclusively by the community with its own resources, the program was developed by the combined efforts of about 125 representative citizens. This determined group of citizens, during the fall of 1962, identified and analyzed 40 case study areas and reached agreement on three priority projects to be carried out with the understanding and support of the entire community. Motivation for this action is best explained by a quotation from the FOREWORD of the Hallandale Workbook for Community Development Action * which describes a meeting of the local chamber of commerce and the consequences of that event. At the meeting, the FOREWORD re¬ lates, a prominent businessman asked to be relieved from his assignment as chairman of the chamber's beautification committee. The FOREWORD continues: "I would like to work with a new committee on COMMUNITY DEVELOPMENT," he said. Pressed for explanation, he went on to draw the picture which had been taking shape in his mind as he attempted to enlist the cooperation of the entire community in his beautification program. "Every problem in a community has a way of overlapping another one," he stated. "Wherever I go with this plan of beautification I run against a stone wall... lack of financing, narrow highways, lack of drainage and sewers, obsolete struc¬ tures needing to be torn down, water problems, lighting problems .. . and most of all, the great lack of adequate financing to handle these problems. "What this community needs is a complete study and analysis made of the over-all picture. We're growing fast, perhaps too fast for our present set-up, and if we don't stop right now and take inventory and determine what we have here, where we are heading, and what we must do to be ready for the future, we're going to be in trouble. "Thus was the Community Development Program in Hallandale born, and quick to pick it up and nurture it were many leaders from many organizations in this small city, and some who were simply homeowners in Hallandale but who had definite convictions about its problems. "The result was this Workbook, compiled from the reports of innumerable meetings of study groups during the past six weeks. But it's only the beginning. "The General Chairman and all the persons who have worked on this project see it as a preliminary report taken from the readily available information existing in the minds and on the desks of the people involved. It is a simple inventory which pinpoints our needs. Certainly fur¬ ther study must be taken at depth on many of the subjects covered. Much of the action indicated is already underway by the city government, the chamber of commerce, or other local organizations. "Now, at least, we have a PLAN. A plan which coordinates all problems and projects and shows them in their relationship to one another. It was the citizens of Hallandale who drew up this plan. It will be the citizens of Hallandale who put it into ACTION." Experience in Other Communities Hallandale, in the development of its program of work, was following a pattern now being used in dozens of cities in every part of the United States. In each instance a substantial number of citizens has been involved. The time consumed has been relatively short in completing those programs. The cash outlay has been surprisingly small. Results have been highly gratifying. The following tabulation outlines pertinent information from the first eight communities which have completed their program of work. * Published by the Hallandale Chamber of Commerce, Hallandale, Florida. 3 COMMUNITY DEVELOPMENT PROCEDURE DEMONSTRATIONS Community Population Individuals Participating Time Required Cash Outlay Amarillo, Texas 152,000 361 app. 24 months $1644 Bloomington, Indiana 31,357 145 app. 12 months app. 150 Erie, Pennsylvania 135,057 app. 300 3 months app. 300 Hallandale, Florida 10,483 125 3 months 410 (including 300 workbooks) Jacksonville, Florida 201,030 app. 500 7 months $ 625.20 Point Pleasant, W. Va. 5,785 app. 55 app. 20 months app. 100 Rapid City, South Dakota 47,903 app. 200 18 months app. 500 Tampa, Florida 304,500 app. 170 18 months less than 900 Results Accomplished Relative newness of the program precludes the possibility of complete records of accomp¬ lishment in participating communities. In some instances early 1963 marked the beginning of implementation for many of the approved programs. In other instances, high priority projects are long range in character and will require years for completion. Nevertheless, enough evidence is available to show that the record of accomplishment in the community development program can be impressive. In support of this finding are the re¬ ports released in the first two months of 1963 by cities where high priority projects are moving ahead. Amarillo, Texas The community development program in Amarillo is one of several major factors con¬ tributing to that city's renaissance — a development so vigorous that the Dallas NEWS commented editorially: "There are reasons why Amarillo is 'Going like a House Afire' — and perhaps one of the least tangible but most important reasons is the kind of people who live in Amarillo — They are the kind of people who have been working for some time to improve their city." A 1959 study of the community was climaxed by the recommendation for a ten-year program of downtown capital improvements totalling about $15,000,000. It seemed, at the time, a staggering sum. However, aggressive action by the community as a whole already has brought about the in¬ vestment of more than $5,600,000 in the central business district, and another $300,000 has been announced for future construction. Upon commencing the community development program, which Amarillo gave the positive title, "Citizens Action Program," or C.A.P., two urgent requirements were immediately estab¬ lished: 1. an expanded sewer system, and 2. a new building code. 4 Only recently completed, the Amarillo C.A.P. shows the following specific results: 1. Recommendations by the Sewer and Drainage sub-committee have resulted in passage of a $5,000,000 sewage bond election, which in turn has allowed the city to proceed with the treatment plants recommended by the C.A.P. group. All contracts have been let for the north treatment plant, and completion is expected in 90 days. Contracts for the south plant, a complete treatment facility, will be let this month (January, 1963). 2. The city's building code is in process of being revised. 3. A land use study of parcels of city-owned land bordering the expressway and in other sections of the city is being prepared and scheduled for presentation to the Fine Arts Council for action in February, 1963. 4. Following recommendations made by the Commercial Development Committee, the City of Amarillo has given an early priority to the resurfacing of Polk (main) Street in down¬ town Amarillo, and to eliminate the high curbing in the CBD. 5. Proposals by the Resort Activities sub-committee have resulted in several significant actions: A. A special 26-member ad hoc committee was established to pursue the establish¬ ment of the Alibates pre-historic flint quarries as a national park or monument and effective action is being taken to forward the movement. B. A brochure to publicize Panhandle-Plains Historical Museum at Canyon has been devised, and is being used by the Chamber of Commerce and other groups for this purpose. C. Promotional material has been developed regarding the theatre in Palo Duro State Park. 6. It has been recommended to the City Commission that an incinerator is urgently needed and that a bond issue be called for this purpose. 7. The number one priority as named by the priorities committee is the need for a civic center and adequate convention facilities. The Chamber of Commerce is taking on this priority as its number one project in its 1963 program of work. Bloomington, Indiana A preliminary report of the Priorities Committee sums up the status of the community development program in Bloomington. "We are just entering the stage of implementing the ten priority projects which constitute our program of work. This involves: 1. publicity, 2. meetings with groups to whom the projects can be presented to insure their support, and 3. special action on one matter which is considered urgent. "Probably the one area of greatest urgency which resulted from our studies is that of planning and land use control. The county has had no control over land uses, outside the city limits. There is a great deal of growth occurring which is generally disorderly. The studies pointed up some of the problems which resulted from unplanned growth — inadequate streets and roads, mixture of in¬ compatible land uses, use of land for one purpose which should better have been reserved for an¬ other, and so forth. Of particular importance and urgency is the present construction of a huge reservoir in the southern portion of the county, and extending into two or three other counties. This reservoir is being constructed with both state and federal funds. It is expected that tremendous economic developments will result through increased water supply, tremendously increased rec¬ reational opportunities, flood control, and so forth." 5 Erie, Pennsylvania Erie served as the Pilot City for the first demonstration in the nation of the community development program. Formulation of that program was accomplished without any precedent or previously tested procedures. The people of Erie had to pioneer both in the development of their program of work and in its implementation. Certain results were accomplished almost immediately. One was the reorganization of the lake fishing industry. Erie at one time was the largest fresh water fishing port in the world. That position had deteriorated to the point where only a few fishing boats were in use. The number of fish in Lake Erie had actually increased but their species had changed and methods of catching them had to be altered. Pike, whitefish and other large species formerly caught in great numbers had given way to smelt. Refitting of boats suit¬ able for smelt fishing had not been done partly because of the cost of equipment and equally be¬ cause of the lack of shore facilities. Additional freezing capacity, required to process the smelt, was needed. As soon as the proportions of the problem became clear, a Pilot City Fisheries Conference was held. As a direct result of that meeting a small group of fishermen and processors met and agreed to make the changeover necessary for smelt fishing. That industry is now we 11 established in Erie. Another almost immediate result of the community development program was the approval at the next general election of a bond issue for water supply purposes. Twice before voters had rejected the bond issue. Following the case study report on water needs the bonds were approved by a comfortable margin. At the end of the first ninety days of the community development program a score card was prepared to show progress made: 1. Water - new city reservoir approved 2. Agriculture - one county reservoir projected 3. Fisheries - program near completion 4. Highways - Erie-Pittsburgh freeway committed 5. Resort Activities - Winter sports program launched 6. Convention Promotion - fulltime convention bureau established 7. Economic Base Study - salt potential under study 8. Wage Rates - study being made 9. Industrial Promotion - program continuing 10. Central Business District - new street lighting 11. Transportation Plan - in abeyance 12. Zoning - zoning variations tightened up 13. Neighborhood Analysis - real estate board project under way 14. Housing Code - no substantial progress 15. Housing and Renewal Administration - deferred for new charter 16. New Charter Preparation - Committee appointed 17. Public Health - no action 18. Public Works - deferred to new charter 19. Parks and Recreation - no action 20. Citizen Participation Process - now in action This brief resume fails to give full indication of the value of the community development program to Erie and the metropolitan area of which it is the center. Perhaps additional insight will be provided by the following exploration in some depth of two priority problems brought to light by the program and now recognized as being of great significance to the future of the community. The first example relates to the industrial exploitation of natural resources. Many Erie citizens are conscious of the importance of creating new industrial jobs. This consciousness 6 was underscored when a large national manufacturer moved part of its operations from Erie, causing the loss of about 15,000 jobs. The city was searching for substitute sources of employ¬ ment. The fact was being deplored that the city was a fabricating center which had to adjust to continuous change in the patterns of production. The suggestion was frequently made that the city's primary need was some basic industry which would have great stability and which would attract satellite industries. In the study of advantages of location and natural resources, evidence was produced that Erie was sitting on extensive deposits of salt. However, no direct connection between the ex¬ istence of this natural resource and the possibility of basic chemical industries had been ex¬ plored. Development possibilities are uncertain because the salt deposits are deep in the ground and mining operation may be prohibitive. Nevertheless the possibility is now being studied. The outcome could have a tremendous effect on the future of Erie. The second example centers about the city's public works department. That story is told in the following quotation from the Erie Workbook for Community Development Action: "At present, no true Public Works Department exists in Erie. The functions normally per¬ formed by such a department are scattered through three departments and are operated under the supervision of three different members of City Council. Under the new form of government, all of these operations should be consolidated into a single department of public works. "One aspect of a normal public works department presents a unique problem of such pro¬ portions that it deserves special and immediate attention. It has to do with the collection and disposal of garbage and trash. At the present time, the city is spending more than $450,000 from the Parks Department budget, and more than $100,000 in the Bureau of Health budget for an incomplete collection. Residents are forced to pay a sum — which has been estimated at a minimum of $100,000, and may run as high as $250,000 per year — for private trash collection to supplement the city service. This makes a total of at least $650,000 being spent in Erie each year for that service. It has been established that a completely modern, combined service could be established for Erie at a cost of about $450,000. In other words, action to establish a completely new and improved service could save residents of Erie at least $200,000 each year, and provide a much better service than now exists. "The essentiality of quick action to correct this condition arises because of the political patronage inherent in the present system. The private collection, which supplements the public collection service, is subject to public supervision. Collection trucks should be covered to prevent trash from being scattered on the streets. Any collector who fails to meet the established standards can be put out.of business. Actually, most of the trucks in use for the private collection do not meet the legal standards. They could be put out of business tomorrow. Therefore, they are beholden to the public official who permits them to operate. Being dependent on his leniency for their livelihood, they must support him politically. They constitute a privately financed campaign organization which is almost as powerful as the Democratic or Republican Parties. They can prejudice the opportunity of the people to make a free choice of public officials under the new form of government. "Action to correct this situation, immediately can save residents and taxpayers at least $200,000 per year, and can also eliminate a potential source of political pressure which could be a threat to the new form of government." This problem was made the subject of the Citizen Participation Process. The matter in which the Citizen Participation Process was organized and its results are discussed at length in Case Study Area No. G23 in Chapter XI and in Chapter XH of this book. 7 Hallandale, Florida The implementation of the program of work in this community is just getting under way. However, the following results already are apparent: 1. New and necessary activities which might not have received priority attention without the program: a. Education of the citizenry as to the cost of the improvements they need and want, and the small pro-rata increase in taxes they may be asked to accept to pay for the program. b. Letting the City administration know that a majority of the citizens want and will pay for certain improvements. (Up to now, a small block of citizens representing one particular section of town has made a habit of attending every City Commission meeting, usually to block any progressive innovation. The City has indicated during the progress of the development study that they will not be averse to going into debt or initiating a new assessment if they are reasonably sure the citizenry will approve). 2. Specific results on priority items we credit largely to the program: a. The appointment of a professional firm to make new ad valorem tax assessment by the City (Number 1 item on Priorities projects was to get the City on a sound fiscal basis). b. Decision of the City to borrow money for certain items which were high on the priorities list (although Number 2 item on Priorities Committee's recommendation was simple "Master Plan," they are presently at work compiling the most important items to be included in the Master Plan... it is the consensus that Beautification will be high on the list, especially the adoption of the Master Plan for Highway Beautification. The City has approved an outlay of $68,000 for the Beautification and lighting ot the two most important sections of throughways. Action is now underway.) c. Number 3 item on the Priorities Committee's recommendation was "Citizens Par¬ ticipation Process." Plans are now being made for the second City Wide Meeting to initiate this process this month, and this month will also see the formation of Toastmasters International of Hallandale. This latter group is being formed with the expressed purpose of producing in three months at least 20 skilled speakers who can lead discussion and speak before organizations on items which are given priorities in the Master Plan. Jacksonville, Florida The following excerpt from a letter about the community development program, gives a report of the status of that program in early 1963: The listing of Education as the Number One Priority in our community development program would never have occurred without this study. The second priority, Public Health, including ac¬ celeration of the coordinated sewer and drainage plan, is another item that would never have re¬ ceived attention without our study. $37,000 has now been budgeted for our Planning Board, which is the first adequate appropriation ever given this agency. This will enable the Board to employ a planner after January 1, 1963. An¬ nexation has received the backing of the Chamber, the community development program, the Board of Realtors, and other organizations, and will be voted on January 8, 1963. 8 Under Port and Water Development, our Number One recommendation was a countywide Port Authority. The legislative delegation has met with members of the Chamber and agreed to submit legislation to accomplish this in the 1963 session of the Florida legislature. An accelerated effort brought about an appropriation of $205,000 in the closing session of the last Congress to provide financial planning on the Cross State Barge Canal. It is expected that the 1963 Presidential budget will include digging money for this project, which has been drifting for thirty years. Under Traffic and Transportation, discussions are continuing for the solution of our airport problem, which is listed as Number 1, and we expect agreement on this shortly. Number 2 - this program and solid Chamber backing has brought about a compromise between the county govern¬ ment and our Expressway Authority, and a $79,000,000 expansion program will be submitted to bond houses after January 1. The Housing and Urban Redevelopment Program, as outlined, has become the 1963 pro¬ gram of the Jacksonville Board of Realtors. Point Pleasant, West Virginia The following report on the status of the community development program in Point Pleasant was made by the Priorities Committee at the end of 1962: 1. Recreation Facilities - The development of City Park is near completion; however, additional ideas have been advanced and will be launched in the Spring of 1963. 2. Commercial Development - An old building has been removed. A movement is under foot to secure two new tenants to occupy the old hotel building, which will be rebuilt to suit the needs of two large retail operations. An architect is making a sketch of the proposed remodeling of the backs of the buildings in the three business blocks. With such a drawing, the proposed remodeling will be easier to sell to the property owners and the town in general. 3. Comprehensive Planning - A comprehensive plan for the growth and development of the City has been approved, and the Pilot Study Group will work toward its implementation. 4. Zoning Regulations - New regulations have been prepared for the City Planning Com¬ mission. These have the approval of the Commission and the Pilot Study Group. The Pilot Group will aid in the public hearings and public educational work. 5. Subdivision Regulations - Same as Zoning Regulations. 6. Building Codes - The National Building Code is being recommended to Council for adoption. 7. Urban Renewal - A committee is working with federal agencies to qualify for federal aid to remove substandard buildings and replace with new low-rent apartments. 8. Capital Improvement - Committees are working on streets, sidewalks, storm sewer im¬ provements, new City Hall and Fire Station, and additional parking space. The projects will be financed by bond issues and federal aid. Rapid City, South Dakota The following report of progress in the community development program is contained in a letter summarizing accomplishments through 1962 of what Rapid City calls its "Community De¬ velopment Action" program: 9 Progress made in strengthening our planning system would not have received priority attention without our CDA Program. Of particular interest, one item with which we were con¬ cerned ... a need for a new city auditorium, was placed quite a ways down the list as a result of our CDA priority rating. Our greatest success to date has been the establishment of $25,000 in the city budget earmarked for the purpose of providing studies and resources for our Planning Commission. This is the first time the Planning Commission has had any funds to support their program. Other items on our priority list which have been accomplished include: 1. the passing of a bond issue for a new armory and a new fire station for North Rapid, 2. a date has been set for a sewer bond issue which was next on our list, and dates are being contemplated for a school bond issue probably for September, 1963. These dates are not necessarily a direct result of CDA effort, however we have been involved in the process and supportive to the needs. Tampa, Florida A rather extensive report on the progress of the community development program in Tampa is available, largely through the report of the Priorities Committee. While most of the projects recognized in the Priorities Committee report had been under study for some time, it is believed that the Community Development Action program focused attention on the various problems in a way which had not been done previously. Because of this emphasis, projects that had been on "dead center" for years, began to move. These included: 1. Specific plan for the modernization of the Florida State Fair. 2. An objective analysis of the various welfare agencies, their budgets, programs of service, etc. 3. The organization of a community-wide effort to evaluate and provide realistically for present and future medical facilities. 4. Development of the value of a broad convention and tourist promotion program - resulting in a big "push" to expedite construction of the new Convention Center. Largely as a result of the program, the new Convention Center is assured and ground will be broken in March or April of 1963. 5. A revitalization of the Chamber's industrial development effort which, during the past five years, has been extremely successful but which seemingly had lost some of its initial steam. 6. An active and practical plan for a broad permanent beautification program for the entire city. The first and most important result of the Community Development Action program was that it provided a vehicle which developed for the first time in recent years an intimate knowledge of the city's problems on the part of a majority of the citizens and succeeded in getting literally hun¬ dreds of citizens talking about solutions. This, I feel at this time, is a far more significant achieve¬ ment than any specific project which has been completed. A complete modernization plan for Ybor City, long dormant, began to move and at present construction is well along on a pedestrian mall and other facilities which will rehabilitate this potential tourist attraction of Tampa. A specific plan to eliminate railroad grade crossings from the central business district has now been approved and feasibility studies seem to indicate that construction of the major overpass will be started at least during 1963. 10 A startling example of what the community development program can do is provided by a taxation study in Tampa. Before the community development program was undertaken, a study of the city assessment system was conducted by the Greater Tampa Chamber of Commerce. The study showed that 70% of the residents of Tampa were paying no real estate tax. This was due to the so-called homestead exemption in the Florida State Constitution which provides that any homeowner living in his own home is entitled to a tax exemption of $5,000. In Tampa the assessments are made at about 50% of full value. Thus, a structure worth about $10,000 could be assessed at less than $5,000 and the owner would pay no ad valorem tax. The question was raised: What would happen if a homeowner chose to improve one of these dwellings close to the border line? The answer was that such improvement would put the im¬ proved property on the tax rolls. Homestead exemption obviously creates an obstacle to the up¬ grading of existing housing throughout Florida. When this was pointed out, immediate reaction was that emphasis on amending the exemption clause would be politically unacceptable and dangerous for leaders of any Florida community to advocate. However, after the community development program was formulated, the following quotation appeared in the Priorities Committee report: "Establish a Fair Local Tax Policy Because: a. Present local tax system is grossly inequitable. b. Unfair taxation is a deterrent to industrial, business, commercial and distribution growth. c. Tax policy is far reaching in all aspects of the present and future growth. d. The future growth and prosperity of this community depends upon the local governments being willing and able to finance needed public facilities according to plan. e. Badly needed projects are left undone because of lack of financing. Included in this area are: 1. Complete analysis of revenues and expenditures. 2. Level of services people require. 3. Long range analysis of social and economic effects of tax policies on growth and development. NOTE : The problem of homestead exemption, Study Area No. 24, outlines the situation. Various groups are now at work digging into the problem. When their work is further along, the community must seek an answer." Today, politicians in Tampa are beginning to talk about the homestead exemption as it exists in the Florida Constitution. Local leaders have begun to discuss the matter with leaders of other communities. All this is preliminary to a statewide re-examination as it affects the over¬ all economic growth of the state. 11 <§ ■i Chapter II ESSENTIAL PRINCIPLES AND PROCEDURES The secret of success for this particular community development program lies in the prin¬ ciples and procedures on which the program has been built. These principles and procedures have evolved from experiences in industry and among voluntary organizations over a period of at least twenty-five years. Perhaps the most basic of these principles in concerned with the division of labor in public affairs. This principle requires that many persons with widely divergent skills be involved in the formulation and implementation of a community program of work. The principle must be sup¬ ported by procedures which enable these persons to work together effectively in making decisions and taking action. The Division of Labor The particular division of labor with which these case studies are concerned has been pat¬ terned more on existing practices in private industry than on traditional patterns for dealing with public affairs. The difference involved may be of great significance to the future of urban problem solving. Finished industrial products are usually the result of many operations performed by many individuals, possibly working at widely separated locations. Each separate operation must be performed to exacting specifications to insure its acceptability for incorporation in the finished product. Each is subject to continuous competition by which it may be eliminated. All the parts must be made to function as a unit before the finished product can be marketed successfully. In public affairs, the division of labor is built around specialized services such as educa¬ tion, public health, police, fire, and public works. Each service has its own trained personnel. There is no one final product by which to judge a service or to determine its competitive posi¬ tion, either in relation to other services or to economic activities. While this particular division of labor has much to recommend, it has not produced sufficient personnel in any one of the services to meet all the demands placed upon that service. Where services overlap, the inadequacy of this division of labor becomes particularly obvious. Consider metropolitan government as an example. The traditional public affairs approach is having great difficulty in: 1. Creating common denominator understandings and agreements among the people; 2. Determining what part planners and public administrators should play in developing new forms of government; 3. Getting official decisions and action to implement the recommendations of the planners; and 4. Finding local revenues with which to provide necessary public services. As efforts to correct these weaknesses are intensified, much merit may be found in adapt¬ ing for use in public affairs certain essential parts of the industrial division of labor. Almost certainly it will be found that no personnel in any area of public service can be made competent enough to deal effectively with all the problems by which it is beset. Instead of trying to wrap up some of these complicated problems and making them the exclusive assignment of the trained professionals, the more practical procedure may be to break the problems down into various parts, each of which can be accomplished by individuals with special skills and all of which can be coordinated to produce a final desired result. If this possibility is approached with an open mind, some new and rather startling concepts are likely to emerge. A community-wide approach to problems becomes substituted for the highly specialized professional approach. Many more persons become directly involved in the problem solving process. No single source of authority and responsibility remains in position to control an entire area of activity. Democratic decisions and action become an integral part of each com¬ prehensive service operation. 13 New Concepts in Community Development Enough experience has already developed in breaking down complicated social problems to indicate some of the new concepts which may result. For example, preliminary application of the principles and procedures recommended by the National Chamber in a limited number of cities has produced six concepts which have been summarized in Chapter III of the book, Basic Concepts in Community Development * as follows: Concept No. 1 Balanced Community Development Any comprehensive program for community development should involve activities in each of the following categories: advantages of location and natural resources, industrial develop¬ ment, commercial development, comprehensive planning, housing, urban renewal and the mod¬ ernization of local government. If combined in the right proportions, these activities will in¬ sure the balanced physical development of any community. Concept No. 2 Analyses More Basic than Planning The growth of modern industry has resulted more from research and development than from planning. No comparable research effort has been made in community development al¬ though the need for it is evident. To create the strong foundation needed for sound planning, research and analysis must be undertaken to help establish a viable ecological relationship between man and his environment. Concept No. 3 Expanding Comprehensive Planning Comprehensive planning is generally defined as a public process concerning primarily: land-use plans, transportation plans, public facilities, and public improvement programs. While each of these aspects is important, their sum is only part of the total planning require¬ ment. Comprehensive planning must establish a working relationship with all that is involved in balanced community development and in fundamental research and analysis. Concept No. 4 Bridging the Gap between Planning and Implementation Many excellent planning studies, when completed, only gather dust on library shelves. This manifests not a weakness in the planners, but the inadequacy of implementation proce¬ dures. A better division of labor must be worked out to coordinate the recommendations in planning studies with community-wide decisions and actions. Concept No. 5 Citizen Participation Citizen participation, essential in a true democracy, must be transformed from a passive into a positive control over government. The possibilities of positive control must be explored, developed, and demonstrated until they become an accepted part of community development. Concept No. 6 Motivation for Leadership A close relationship exists between the quality of leadership and the results achieved in community development. Almost everywhere the quality of leadership can be improved. Usually this improvement is more a matter of motivation than of specific skills. Better motivation must be encouraged as an essential part of sound community development. Basic Principles and Procedures In addition to broad, general principles such as that of the division of labor, very specific principles and procedures must be developed before results, such as those indicated in Chapter I, can be expected in cities of all sizes faced with dissimilar circumstances. Many of these specific principles and procedures have been discovered and are set forth in the following pam¬ phlets of the Community Development Series :* 1. Balanced Community Development 2. Community Analysis 3. Comprehensive Planning *See Foreword, page 2 14 4. Planning Urban Renewal Projects 5. Modernizing Local Government 6. Financing Community Development 7. Community Leadership Even more specific are the thirteen steps described in the pamphlet, How to Create a Program of Work for Community Development .* which will be referred to hereafter as the Leader’s Guide: Step 1 . Step 2. Step 3. Step 4. Step 5. Step 6. Step 7. Step 8. Step 9. Step 10. Step 11. Step 12. Step 13. Organize the study course Plan the succeeding steps Make basic assumptions about the future of the community Select the Priorities Committee Hold the First City-wide Meeting Identify areas to be studied Select qualified persons to help analyze problems Standardize the procedure for analyzing each problem Organize the Citizen Participation Process Prepare the report of the Priorities Committee Consideration by citizens' organizations Complete the program of work Give leadership for continuing problem-solving action Each of the steps described has been designed, not as an end in itself, but as a means to an end. While each step has a product of its own, it gets its real significance, like part of an assembly line operation, from the contribution it makes to the completion of the whole. Each step retains its validity regardless of the size of the city or the circumstances under which it is applied. Application of the procedure will produce different results in dif¬ ferent communities as has already been indicated in Chapter I. But that is a recommendation for the procedure. As long as the program of work developed by a given community wins the confidence of the people and makes an obvious contribution to growth and development, it has fully justified itself. Modification of the Basic Procedures Many persons who concede the desirability of a new division of labor in community de¬ velopment will ask, "why thirteen steps?" They become impatient with what may look like an unnecessarily complicated procedure. They ask why some simpler procedure cannot be de¬ veloped. Some changes and improvements probably will be made in the thirteen steps as people become acquainted with them and experience accumulates on which sound changes can be based. But definite experiences, which can be reported and studied as case histories, should be assembled before changes are attempted. Otherwise serious mistakes may be made. The danger can be suggested by a single example which relates to the sixth step, the identification of areas to be studied. Many persons will disagree with the explanation of that step which is given in the Leader's Guide and in Chapter VHI of this book. They will insist that a more democratic procedure should be followed and citizens generally should be invited to make suggestions about case study areas which should be investigated. On the basis of actual experience with the modification of the recommended procedure, two possible difficulties seem to be inherent in relying entirely on the suggestions of citizens. In the first place, relying on democratic suggestions frequently results in overemphasis on problems about which people are already concerned and little or no emphasis on other basic¬ ally significant problems about which people have less awareness. *See Foreword, page 2 15 Secondly, experience indicates that the people who make suggestions usually have a per¬ sonal interest in them and may become resentful if their pet project fails to make the high priority list. Such persons may lose interest in the program and lessen the cooperation that otherwise would be extended by organizations with which they are affiliated. This can be very harmful. The point to be made is that the thirteen-step procedure constitutes a formula which is complete and effective. It can be followed with confidence. While changes and adaptations may not reduce its effectiveness, the possibility always exists that some of the changes made will invalidate the entire procedure. The risk is great enough to justify the suggestion that changes should be few in number and restricted in their scope. 16 Chapter El STUDYING COMMUNITY DEVELOPMENT PROCEDURES Communities are continuously passing judgment on the course of action they should follow in dealing with problems of their growth and development. Some of them, by their failure to act, are making a decision to do nothing. Others may try to move in many different directions at once. In considering various possibilities, some communities will want to examine the thirteen- step procedure around which this case study book has been built. E so they should be encouraged to investigate the procedure carefully before making a decision. How such an investigation can be facilitated is discussed in this chapter. Advance Preparation No attempt should be made to explore the possibilities of the thirteen-step procedure, which as a matter of convenience will be called the community development program, until key leaders of the community have been consulted. These key persons should be told in general what the pro¬ gram attempts to accomplish and should be assured that it is not in conflict or competition with any existing activities in the community. One way to convey this assurance is to liken the program to the F.B.I.'s list of the ten most wanted men. The fact that such a list exists does not lessen the effort of local officials in law en¬ forcement. But the list does generate added effort resulting in the capture of a surprising per¬ centage of the ten most wanted criminals. As fast as one name is removed from the list it is replaced by another. Over a period of years, many criminals are given this priority listing. The community development program is designed primarily to secure widespread under¬ standing and agreement on certain priority projects to be undertaken with full community support. These priority projects will usually be selected from among activities already being promoted by one or more local organizations. Special emphasis on these projects need not interfere with the other activities which any organization is conducting. However, if and when any activity is se¬ lected for priority treatment, more is likely to be accomplished in a few months than could be accomplished in years of solo effort on the part of a single organization. Key community leaders should be assured that no projects have been chosen in advance and that no selection will be made until all interested organizations and agencies have participated in the formulation of a program of work. The program must be a true community effort, under¬ stood and supported by citizens generally or it has no validity. After the necessary groundwork has been laid, a single organization may take the initiative to organize a study of the community development program. The record indicates that in every community which has actually undertaken the program the sponsoring organization has been the local chamber of commerce. In Jacksonville, Florida, this sponsorship was shared with the Jacksonville Board of Realtors. No doubt many other organizations and interests will take the lead in different communities. In each instance the sponsoring organization should be acting as a catalytic agent for the entire community rather than as the promoter of any special interest of its own. E any organ¬ ization tries to use the community development program for selfish advantage, the effort is almost certain to fail because it will not be able to mobilize all the local resources essential to the success of a true community-wide program. The sponsoring organization, as part of its explanation of what is being proposed, could advantageously distribute copies of the Leaders' Guide* in strategic locations. This pamphlet helps explain the thirteen steps and the broad f ramework of community cooperation within which the steps must be carried out. Reaction to the pamphlets on the part of key leaders may help select the individuals who should concern themselves with the analysis of the community develop¬ ment program and its possible application to the community. *See Foreword, page 2 17 As soon as interest has been developed far enough to justify action, a formal study course should be organized to create familiarity with the recommended procedures and to discuss the feasibility of their local application. Content of the Study Course The study course should be based on the Leaders' Guide and supplementary materials to which it refers. Use of this material will immediately distinguish this particular study course from any other in the field of community development. Entirely new principles and procedures will be advanced. Actual case studies will be cited to show how the procedures have worked in other cities and how they can be expected to work in any community. Seven meetings should be held as a minimum. A suggested schedule, which indicates sub¬ jects to be discussed and reading assignments, is adapted from the Leaders' Guide as follows: Meeting Subject Reading Assignment First Organizing Study Program Second Balanced Community Development Third Analysis more Fundamental than Planning Fourth Comprehensive Planning Fifth Implementation of Planning Source Materials This book, Case Studies in Community Development The Community Development Series * The Leaders' Guide * Basic Decisions in Community Development * Lesson assignment to each participant A. pp 1-23 pamphlet No. I of the Series * B. Step 6, page 15 Leaders' Guide Chapt. VII, this book C. Chapt. Ill of Basic Decisions D. pp 1-4 and 5-12 pamphlet No. II of the Series * E. Chapt. IV in Basic Decisions F. Step 3, page 9 Leaders' Guide Chapt. V, this book G. Step 8, page 19 Leaders' Guide Chapt. X,this book H. Pamphlet No. HI of the Series * I. Chapt. V in Basic Decisions J. Step 2, page 8 Leaders' Guide Chapt. IV,this book K. Chapt. IX in Basic Decisions L. Chapt. XI, this book M. Step 10, page 22 Leaders' Guide Chapt. XIII, this book *See Foreword, page 2 18 Meeting Subject Reading Assignment Sixth Citizen Participation Seventh Leadership N. Step 12, page 26 Leaders' Guide Chapt. XV, this book O. Step 13, page 27 Leaders' Guide Chapt. XVI, this book P. Step 5, page 13 Leaders' Guide Chapt. VII, this book Q. Step 11, page 24 Leaders' Guide Chapt. XIV, this book R. Step 9, page 21. Leaders' Guide Chapt. XII, this book S. pp 24-34 pp 22-29 pp 25-29 pp 19-23 pp 30-32 pp 17-22 in pamphlet No. in pamphlet No. in pamphlet No. in pamphlet No. in pamphlet No. in pamphlet No. I of the Series * II of the Series * III of the Series * V of the Series * VI of the Series * VII of the Series* T. Chapt. VII in Basic Decisions U. Pamphlet VII of the Series * V. Step 4, page IT Leaders' Guide Chapt. VI,this book W. Step 10, page 22 _ Leaders' Guide Chapt. Xin, this book X. Step 13, page 27 _ Leaders' Guide Chapt. XIV, this book Who Should Take the Study Course ? There is no way to predict in advance either the benefit which any individual may derive from the study course or the extent to which he may be encouraged to help in the execution of the thirteen steps. For that reason, no criteria or standards can be developed on the basis of which to choose study course members. The general practice in setting up study courses is to invite not less than ten and not more than twenty-five persons. By keeping classes small the quality of discussion is improved and the extent of individual understanding of the program is likely to be increased. Usually, among those invited to attend will be representatives from local government, the business community, and leading civic organizations. In most cases the participants will be persons who are expected to play leading roles in both the formulation and implementation of the community development program. The largest enrollment reported to date has been in Mount Vernon, Ohio. In that city one hundred twenty-five citizens participated. Average attendance at the meetings was a surprising ninety. Interest remained at a high level throughout the course which was based entirely on the Community Development Series and consisted of seven lessons — one for each of the seven pam¬ phlets. Participants were not motivated to continue with the development of a complete program of work, as use of the Series was designed for educational purposes. However, projectes worked onsince the meetings indicate a greater awareness of civic needs than was evident before the course. *See Foreword, page 2 19 Efforts have been made in some communities to select for the study course only those who will be leaders in the community development program. The difficulty with such a procedure is that no way has been found to determine in advance just who the leaders will be. In this particular program a very significant self-selection process takes place. Leaders emerge as the program unfolds, largely on the basis of their abilities and interests. Frequently, an individual who is a seemingly logical choice for leadership will prove to be temperamentally or otherwise unsuited to the thirteen-step procedure. Another less logical choice may fit in with the procedures so easily and enthusiastically that he emerges as a strong leader. The study course should be used less as a means of pre-selection of leaders than as an opportunity for a number of persons to be subjected to the self-selection process. Some communities have selected study course participants to insure the assembling of a representative cro^s section of all its resources, which must be mobilized to bring success for the total program. Such participation opens channels of communication with many organizations and interests and helps assure the cooperation which will be needed. Demands on Participants In most communities many of the individuals who should be in the study group will be so busy that they will have little time for either preparation or attendance at meetings. Before the course begins careful thought must be given to ways in which these individuals can acquire a maximum understanding of the program with minimum demands on their time. The problem of advance preparation can be simplified if each member of the class is asked to do homework on a single reading assignment and to lead the class discussion on that particular subject. This provides a general familiarity with the course materials as a whole and specific mastery of a previously assigned part. Experience seems to indicate that such a procedure heightens the interest of each participant in the study course as a whole. Caution should also be exercised in the conduct of the meetings. Most members of this particular kind of study course do not want their meetings turned into a debating society. They want to relate study assignments to local circumstances. After the first few meetings they will want to begin talking about the identification of local case study areas and about the application of the study course materials to specific local situations. Meetings which move swiftly and in which the subject matter is shown to be pertinent to local problems, will be looked upon as an opportunity rather than an obligation. This attitude has been achieved to a large degree in almost every community which has undertaken study courses. It has paved the way for the initiation of community development programs in most instances. Case Study Results Because of the limited number of communities which have completed study courses, the evidence available does not permit the drawing of final conclusions about the study course or about the procedures which will secure best results. However, experiences in a few selected cities will be described in the hope that they may be useful to other communities which are considering study courses. Aberdeen, South Dakota At the conclusion of the first study course, a second course was started. This was at the request of certain individuals who were interested in the program but had not participated. Additional courses will now be started until all who want to become fully acquainted with the program have been accommodated. 20 Erie, Pennsylvania Because Erie was the first city to undertake the program, no precedent existed on which to base a preliminary study course. Instead a series of meetings were held with important individuals and groups to acquaint them with the program and to ask their cooperation. During these meetings an effort was made to explain the procedure which would be followed. In no case was anything more than a general understanding achieved. The most positive support for the program, outside the sponsoring Greater Erie Chamber of Commerce, came from Mayor Arthur J. Gardner who created his own study course. He read each of the pamphlets in the Community Development Series and made a careful analysis of what he believed the effects of the program might be. Then he became an enthusiastic supporter of the program, and instructed all city employees to cooperate fully. Assurances of support were also secured from the local press and other communications media. However, there was no careful background preparation on the part of the reporters who handled the news stories about the program. As a result, some of the stories were piecemeal and without close relation to any well conceived and completely integrated program. The lack of a group of community leaders trained in the fundamentals of the community de¬ velopment program had other unfavorable repercussions. All inquiries about the program had to be referred to the operating staff. Persons recruited to take part in various steps of the pro¬ cedure were not always clear about the relationship of what they were doing to other parts of the program. What happened in Erie served to emphasize the necessity for a carefully planned study course and the participation in that course of a good cross section of key leaders in the community. Fredericksburg, Virginia In Fredericksburg an innovation of some significance was introduced. After each meeting a summary was prepared, mimeographed and distributed to members of the study group and to selected individuals. This kept important points fresh in the minds of the members. It also pro¬ vided checklists of possible case study areas and committees for which qualified personnel were needed. Suggestions in the meeting summaries greatly aided the transition from study to action. Leavenworth, Kansas Most elaborate preparations for any study course were made in Leavenworth, Kansas. There, responsibility for the course was accepted by the training staff of the U. S. Army War College under Major General Harold K. Johnson. The staff prepared a complete set of training materials including 32 pages of tables related to the proper identification of community problems. The actual study course consisted of four sessions of one hour each conducted in accordance with the following outline: PROPOSED POI FOR CIVILIAN LEADERS' SEMINAR ON COMMUNITY DEVELOPMENT PROJECT "DOER" Session #1 (1 hour) - Organizational Principles 1. Scope: Review the purpose of an organization; examination of concepts of the in¬ formal versus formal organization, specialization, hierarchy, coordination, span of control, line and staff and their application to type organizations to include community development action groups as a specific example (Note 1). References: a. Community Development Series Pamphlet #1-"Balanced Community Development." 21 b. Community Development Series Pamphlet #VII-"Community Leadership." c. College subject 1010/3, Commander and His Staff-Organization and the Commander's MANAGEMENT Functions. Session #2 (1 hour) - The Problem Solving Process Scope: Analysis of steps in problem solving (identification of problem, assumptions, facts, alternate course of action, comparison of courses of action, and de¬ cision); examination of the roles of judgment, experience, and knowledge in problem solving; methods of organizing the problem solving process; con¬ sideration of case studies applying the problem solving process to civilian community problems. References: a. College subject 1101/3, "Decision Making I-Theory of the Com¬ mander's Estimate." b. Community Development Series Pamphlet #11-"Community Analysis." Session #3 (1 hour) - The Role of Leadership in Organization Scope: Develop understanding of the need for leadership in organizations; functions of the leader; significance of group dynamics on leadership; informal versus formal leadership; roles of purpose, morale, and motivation as related to and affecting leadership; influence of environment on individuals and groups; application of leadership principles and techniques to include community de¬ velopment action groups as a specific example. References: a. Community Development Series Pamphlet #VII-"Community Leadership." b. College text RB 22-1, Chap. 1. Session #4 (1 hour) - The Committee as a Managerial Device Scope: Examination of the nature and use of committees; limitations on use of committees; membership criteria; effective operating procedures; examples of effective and ineffective uses as a management tool in different organ¬ izations to include community development action groups. References: a. Lesson 2, College subject 1010/3, "Commander and His Staff- Organization and the Commander's Management Function. b. Community Development Pamphlet #VH-"Community Leadership." Newark, Ohio Newark undertook the study of the seven pamphlets of the Community Development Series without commitment to continue with the formulation of a program of work. Even on this basis the study course proved to be highly successful. A careful selection was made of persons to take the study course. Key public officials and leaders of voluntary citizens organizations were included. The group met then for seven consecutive Tuesdays at 7:30 a.m. and spent two hours each week in discussion. 22 The format of these discussions was simple but effective. At the outset, the chairman assigned a discussion leader and two assistants to constitute a panel for each session. All participants, of course, were asked to read the pamphlets — one each week —and the discussion leader and his assistants were given the responsibility of presenting each week's subject and its relationship to the local community in whatever fashion they chose. All of the panels of discussion leaders met at least three or four times prior to the session for which they were responsible to plan their approach and to do some research on their subject. The result was quite outstanding in our opinion, particularly since the total group included the people it did. The group's membership included the plant managers of four of our largest industries, three bank presidents, the top men of our local utilities, newspaper, radio station, and assorted other leading businesses and professions. After completing the seven sessions, the group held an evaluation session, which resulted in total agreement that the group wanted to stay together, meet regularly and concern itself with the issues and problems of sound and orderly community development. 23 Chapter IV ORGANIZING LOCAL PROCEDURES While the study course is still in process many of the participants will begin developing convictions about how the community development program should be used in their locality, and then begin devising plans for carrying out various steps of the procedure. Before the program is initiated in any community, many details should be worked out carefully. They include: Explanation of the program to an ever-widening circle of interested persons and partici¬ pants; encouraging the self-selection process to operate until the key leaders for each part of the program have emerged; identifying case study areas and selecting Resource Persons to help with their analysis; setting down a timetable for completion of all thirteen steps; and pro¬ viding necessary management facilities and services to insure smooth functioning of every part of the program. In some instances enough agreement can be reached during the study course to permit immediate initiation of the thirteen-step procedure. Frequently, this will be impossible be¬ cause the study group may be too large to deal effectively with all the details. Where this proves to be the case, an interim or steering committee, composed of not more than five per¬ sons should be created to complete the plans and get the program under way. The End Product In planning a community development program, those responsible should have a clear picture of the end product desired. Then they can coordinate all their efforts toward attaining that product. The end product of every community development program should be clearly explained in a simple and brief statement that emphasizes the goal can be reached only if there is adopted a high priority program of work to which the entire community is committed. Formulation of such a program of work, it should be understood, will require the participation of many persons, each working on tasks for which he is well qualified. The step-by-step procedure shows how this can be done. Putting together the program of work can be difficult or easy depending on the extent to which proven procedures are used. Help Available Although the community development program is in its infancy, accumulated records of experience show that extensive help is available both within and without the community. The Chamber of Commerce of the United States has provided a series of written aids which include the following: 1. An outline of the thirteen-step procedure together with a brief explanation of how each step can be organized. This is contained in the Leaders' Guide.* 2. An extensive list of case study areas together with their analysis. This list, broken down by appropriate categories, is to be found in the Table of Contents of this book. The list is particularly helpful in the selection of local problem areas on which to concentrate. While no community will want to investigate every item, careful exami¬ nation of the list should prevent overlooking any case study area on which local atten¬ tion should be concentrated. *See Foreword, page 2 25 3. Suggestions of the kinds of persons who might be useful in carrying out program as¬ signments. In connection with its discussion of each of the thirteen steps, this book contains lists of names of persons recruited by other communities. In most cases identification of the individuals is complete enough to suggest their qualifications, giving leads on the kind of person who should be selected for similar assignments in any given community. This applies both to Resource Persons (see Chapter IX) and to members of various committees which may be created for highly specialized functions. Within each community, the help available may be discerned by studying information concerning citizenship activity over the years, the programs of action which have been ini¬ tiated previously, and in reviewing the training and experience of individuals. Because the help desired is not always organized so as to make it readily available, special procedures have been suggested for mobilizing local resources and preparing them to help develop a suc¬ cessful program of work. These procedures deal with one part of a problem at a time and are so organized that each step becomes not only possible but also easy and exciting. A few ex¬ amples will show why this is true. A. The Assumptions Committee This Committee's assignment is to make predictions about the future growth and development of the community. Experience shows that persons qualified to partici¬ pate in this assignment can be found in every community, no matter what its size. Usually these persons will be employed as: utility executives charged with estimat¬ ing probable future demand for their product, professional planners, economic sta¬ tisticians familiar with techniques used in population projections or comparable undertakings. They can be recruited to provide all the basic assumptions that the community needs. B. Resource Persons Resource Persons with special training or experience in some area of community development will be required to help analyze problems and to suggest possible courses of action which the community might follow. One hundred or two hundred persons may be involved. That these persons can be found in any community is indicated by the reports on community development programs which have been formulated to date. C. The Citizen Participation Process This Process represents a unique division of labor involving not only individuals but also institutions and organizations. The cooperation of educational institutions with their resources for scholarship will be required. Equally important will be citizens organizations with established channels of communication to every part of the com¬ munity. Both individuals and agencies capable of completing these assignments have been found to be conveniently located in or near most communities. D. The Priorities Committee This Committee serves in the role of a board of directors for the community develop¬ ment program. Selection of members is difficult because qualifications are not easy to define. Motivation of these leaders is of utmost importance and that motivation cannot always be determined in advance. Precedent from other cities is of little or no value. However, the experience of communities generally is that they obtain a surprisingly high quality of personnel for Priority Committee service. One of the reasons may be the self selection process already mentioned in Chapter III. Leaders emerge during the study and planning stages of the program. They help select them¬ selves by their grasp of the thirteen-step procedure and their enthusiasm for it. They give enough of themselves to make the entire program successful. Management Facilities and Services In making plans for initiating the community development program, the study group or the steering committee must be very specific. It cannot set a timetable or plan for coordinat¬ ing the work of different groups until it has secured definite management commitments. 26 Responsibility for management must be fixed. Skilled personnel must be available. Supporting facilities such as office and meeting space and communications materials and devices must be assured. Management should be so organized that it actually participates in every phase of the program and provides a thread of continuity through each of the thirteen steps. This kind of management can be provided by a single individual whose services can be loaned to the program and who can be present at all meetings, assist in the preparation and processing of all reports, and keep paper work and petty details from interfering with progress. Such a management service can be very time consuming. While there have been instances in which it has been provided largely on a voluntary basis, notably in Hallandale, Florida, and in Point Pleasant, West Virginia, most communities will find that contribution of special staff services will be required from some interested organization or organizations. Where this proves to be the case, the problem should be faced squarely and a satisfactory arrangement be provided before the program gets under way. A very unusual solution for this particular problem was developed in Kalispel, Montana, population 10,151. There a Technical Committee, consisting of three leading citizens who are completely familiar with all community development procedures, have taken over much of the management responsibility. To help in planning meetings, a tentative list of case study areas should be prepared in advance. Materials prepared by the National Chamber will prove helpful in this assignment. The use of such lists helps determine the number of meetings which may be required and the number of Resource Persons it is necessary to recruit. While these decisions will be tenta¬ tive and subject to change as the program proceeds, they help define the nature and scope of the task to be accomplished. Actual recruitment of the individuals selected should not be difficult. Once the first few leaders have agreed to serve and their names become known, even if publicity has not been re¬ leased, other persons will be attracted by the calibre of the leadership. Momentum gained in this manner helps assure the program's movement to success. Providing adequate space for meetings of various sizes, office space, secretarial as¬ sistance, and office supplies will require a small cash budget. However, the experience of communities which have carried out the program indicates that the cost can easily be met by one or a few already established organizations. The steering group should insist that necessary commitments for supplying every kind of help are firm before the program is launched. If the success of the program is to depend heavily upon services contributed by an individual, arrangements must be made in advance to release him from some of his present duties so that his workload will not become impossible. In setting a timetable for the program, the steering committee is likely to find that a minimum of nine months will be required. Maximum time should be held to a year and a half if possible. The tabulation in Chapter I indicates the actual time consumed in those communi¬ ties which have completed their programs. Advance planning requires a provision for checking on and correction of the program after it is initiated. If the program falls behind schedule, the steering group should be aware of that fact and be prepared to institute immediate steps to keep things moving as planned. If difficulties threaten the success of the program, the steering group should assume responsi¬ bility for reconciling differences and removing roadblocks. While the purpose of the steering group is to launch the program as rapidly as possible, every precaution should be taken against a hastily conceived, premature start. Details should not be left for decision after the undertaking has begun. The steering committee should avoid the temptation to take short cuts. 27 The danger, inherent in short cuts, is very real. Many communities have done enough work to believe that they need not start at the beginning, but can pick up the program at one of the more advanced steps. This almost never works. Instead a community is likely to find it¬ self in trouble and may have to start the program over again. The result can be disasterous. Case Study Results Specific experiences emphasize the importance of careful planning and organization to the success of the community development program. A few of these experiences include: Amarillo, Texas After the program had been initiated in Amarillo, one of the key leaders left the com¬ munity. His loss could have been a great blow to the project had less thoughtful planning placed predominant responsibility upon him for completion of the program of work. However, because details of the program's organization had been worked out carefully in advance, other persons were able to carry the work forward to completion. Some time was lost during a period of adjustment but the final product did not suffer in quality or effectiveness. Anaconda, Montana Anaconda, Montana, was so eager to initiate the community development program that it attempted to take short cuts. The program quickly ran into difficulty. In many other commu¬ nities, the program would have been allowed to fail. The determination to improve the community was so great in Anaconda that leaders of the community development program set up a completely new organization and made a new start. The new organization was named the Anaconda Community Development Committee. It functions with a Board of Directors, a Chairman, and a Coordinator. The Coordinator acts as the chief administrative officer, responsible to the Chairman and the Board of Directors. Fargo, North Dakota When Fargo planned and organized its community development program, a management committee was created with two co-chairmen. Under conditions existing in other communities, such an administrative pattern may be undesirable. However, in Fargo it added strength to the program and helped get things moving quickly under the best possible auspices. Jacksonville, Florida As indicated in Chapter I, Jacksonville completed its total program in about seven months, because a precise timetable was rigidly adhered to except for certain circumstances beyond con¬ trol of the local leaders. Before the program was initiated, Jacksonville gathered and collated all available local studies in the community development field. This material was made available to the appro¬ priate committees together with suggestions about techniques which would shorten their work and produce reports at the earliest possible date. The municipal government and many citizens' organizations were involved in the program from its very beginning. Others whose participation was delayed were acquainted with what was contemplated and alerted for action at the proper time. Thus preparation was completed for action on each step as soon as preceding steps were completed. 28 Priorities Committee members were selected early. This enabled them to keep abreast of the work of the other committees and to make their recommendations shortly after neces¬ sary problem area reports became available. Complete staff services were provided by the Jacksonville Area Chamber of Commerce. This minimized the management problems and speeded the production of all necessary reports. In spite of the short time in which this particular program of work was completed there was nothing superficial about it. The program of work assigned high priorities to improve¬ ment of education, public health, port and waterway development, and transportation. The Mayor stated publicly, "We can meet all the goals given us in this plan and do it within the next ten years. Action already has been started in many of the fields it covers." The President of the Jacksonville Chamber of Commerce indicated that in his opinion the committee structure of the the chamber must be revised to adjust to the community development program. Joplin, Missouri In Joplin, a community survey was completed before the community decided to follow the thirteen-step procedure proposed by the National Chamber. Leaders, eager to move ahead with the program, decided to eliminate the study course and proceed immediately to planning the re¬ maining steps of the program. A steering committee was created which concerned itself with those phases of the pro¬ gram described at the beginning of this chapter. Three meetings were held during which the identification of problems and the mobilization of resource persons was discussed. By the time these meetings took place, the self-selection process had identified key leadership, a timetable had been devised and the program was initiated with every expectation of success. 29 Chapter V MAKING BASIC ASSUMPTIONS The report of the Assumptions Committee has more direct impact on the participants in the community development program than the report of any other committee. The assumptions made by this committee will be used as a basis for most of the projections which other com¬ mittees will attempt. Each Resource Person asked to plan for the future of his case study area will want to know the population for which he is planning. The very nature of some of the future problems may be transformed, depending on whether the population stays constant, decreases, or increases rapidly. Contents of the Assumptions Report While conditions vary greatly in different parts of the nation and while statistical esti¬ mates will be unique for each community, subjects to be covered in assumptions reports will be substantially the same. In every instance an estimate of population growth and change will be required. Usually an estimate will be made of the industrial jobs required to support antici¬ pated population increases. Data on population and jobs can then be used to calculate need and demand for such things as housing, commercial undertakings, cultural opportunities, and gov¬ ernmental facilities and services. In estimating population trends, the standard techniques should be used. Procedures for this purpose are available from the U. S. Bureau of the Census and from books on statistics. Every community will have available individuals accustomed to work with these procedures. While total employment figures are important in making assumptions about community growth and development, industrial figures have special significance. Industrial jobs are created by the markets in which the output of a factory is sold. These markets may be world¬ wide. If a community can put itself in a position to serve a wide market, its employment and its population are certain to increase quite apart from any control exercised by local conditions. Other forms of employment such as commercial jobs and public employment are likely to move in some direct ratio to changes in local conditions. Ordinarily more than one period of time should be considered in making estimates. A ten- year estimate will be sufficiently long for substantial changes to take place and yet short enough to permit rather sharp definition of trends. A twenty-five year estimate is too long for sharp definition although it may help clarify thinking about needs and resources. That is why periods of ten and twenty-five years are recommended for the report. Recruiting Committee Members Every community possesses or can make available persons with sufficient training and experience to produce a highly useful assumptions report. Individuals with the necessary skills are likely to be found in institutions and corporations which must prepare estimates of commu¬ nity growth in order to plan and to justify their capital investments for the future. Some likely sources of help will be suggested by the following lists of Assumptions Committee members selected in Tampa, Florida, the largest city to complete the community development program and Point Pleasant, West Virginia, the smallest city: Tampa Assumptions Committee Members Earl E. Cooley Assistant to the President Tampa Electric Company M. Crawford Greene Director of Business Affairs Hillsborough County Board of Public Instruction 31 B. N. Hall, Jr. Charles Hyde Hugh McCall Charles N. Millican J. W. Owen Fredric J. Wysor Manager, Research Department Committee of 100, Greater Tampa Chamber of Commerce Assistant Professor, Business Administration, University of Tampa Analyst, Florida State Employment Service, Florida Industrial Commission Dean, College of Business Administration University of South Florida Division Manager, Peoples Gas Company Assistant Commercial Engineer General Telephone Company Point Pleasant Assumptions Committee Members Peter Steenbergen Robert F. Becket Fritz Frey Samuel E. Price Ralph E. Crump District Engineer, Appalachian Power Company Local Manager, Chesapeake and Potomac Telephone Company Manager, Statistical Department Kaiser Aluminum and Chemical Company Supervisor, Merchandising Service Goodyear Tire and Rubber Company Engineer, Vanadium Corporation Preparation of the Assumptions Report Preparation of an acceptable Assumptions Committee report requires no more than two or three meetings of the Committee. Sometimes the report can be completed by holding a single meeting and then circulating drafts of a report for revision and final approval. Completion of the report is speeded if careful preparations are made in advance of the committee's first meeting. At the time each member is invited to serve on the committee, he should be informed of the purpose of the committee and asked to bring pertinent data to the initial meeting. If possible, he should be given an assumptions report from some other city for examination prior to the meeting. If preparations are adequately made, each member will come holding certain convictions about what should be included in the report. Because they are dealing with statistical data, members usually find their views are not seriously at variance from those of other commit¬ tee members. Sometimes, unanimity will permit the outlines of the final report to be drafted during the first meeting. Any differences probably will be limited to the interpretation of the facts rather than the facts themselves. When differences in interpretation do develop, they can be resolved by including maxi¬ mum and minimum estimates in the report with the explanation that they are limits within which the pattern of growth is likely to develop. This accommodation of differences facilitates quick completion of the report. 32 Special Significance of the Assumptions Report The Assumptions Committee Report has a significance much greater than its direct con¬ tribution to the subsequent steps in the community development program. Because it is the first report completed, many persons will regard it as a test of the entire program. It can help eliminate doubts in the minds of many that local people can deal successfully with complicated technical problems. It will suggest that many persons, available locally, have skills which have not been used but which can make a substantial contribution to community development. The Report can help build confidence in the entire community development program, and con¬ vince other persons, whose help will be required, that they, too, can make a worthwhile con¬ tribution to the improvement of their community. In Fresno, California, the Assumptions Committee Report was used in a particularly effective manner. The Committee completed its work before the First City-wide meeting and its report was presented at that meeting. Enough technical details were reported to indicate that the making of assumptions was as complicated a job as most of the other participants in the program were likely to encounter. The report showed conclusively that these technical matters could be resolved quickly with a minimum effort on the part of the participants. There was obvious satisfaction on the part of Assumptions Committee members and other members of the audience. All saw the implication that, if this particular assignment could be completed so easily and well, the work of other participants could probably be accomplished with equal ease. Assumptions Case Study To show what can be expected from an Assumptions Committee in an average city, the following excerpt is presented from the Assumptions report for Rapid City, South Dakota: POPULATION RECORDS The Committee first reviewed the past population records from the U. S. Dept, of Com¬ merce Bureau of the Census which revealed the following: (RAPID CITY) (SOUTH DAKOTA) (UNITED STATES) 1900. ..1342. . .-36.0% 1900., . .401,570. . .+15.2% 1900. . .75,994,575. . .+20.7% 1910. . .3854. .+ 187.0% 1910., . .583,888. . .+45.4% 1910. . .91,972,266. . .+21.0% 1920. . .5777. . .+49.9% 1920., . .636,547. • .+ 9.0% 1920. .105,710,620. . .+ 14.9% 1930. .10404. . .+80.1% 1930., . .692,849. . .+ 8.8% 1930. .122,775,046. ..+ 16.1% 1940. .13844. ..+33.1% 1940., . .642,961. . 7.2% 1940. .131,669,275. . .+ 7.2% 1950. .25310. . .+82.8% 1950.. . .652,740. . .+ 1.5% 1950. .150,697,361. . .+ 14.2% 1960. .42399. . .+67.5% 1960., . .680,514. . .+ 4.3% 1960. .179,323,175. . .+ 18.5% A review of the above three tables shows the following comparative average growth fac¬ tors per decade for the past 60 years: Rapid City.83.4% South Dakota.10.3% United States.15.1% Eliminating the unusual factor for Rapid City between 1900 and 1910, we still show a 62.6% average growth factor per decade for the past 50 years. DIVERSITY OF ECONOMIC BASE IS KEY TO PAST AND FUTURE GROWTH No one segment of our economy dominates or controls the destiny of our area. We have one of the most diversified economies in the United States .. .the only major aspect we lack is a seaport. In documenting the many facets of our economy, the answer is found to the common question, "What supports the local population?” 33 First of all, we define our primary economy as a seven county area which is about 100 miles square and includes the Black Hills region bounded by Belle Fourche on the North, Hot Springs and Edgemont on the South, Newcastle, Wyoming on the West and Kadoka and Philip on the East. This is the primary area of our economy. In this area, Tourism is one of the largest facets, contributing about 70-80 million dollars a year to our economy. This may well increase with the completion of Interstate 90. Total Farm Sales in the 7 County area contribute about 25 million dollars a year. Rapid City is growing as a distribution point and the 1958 figures show a total volume of 41 million per year in Wholesaling. The Military aspect has been going along at about 25 million per year previous to the heavy Titan Missile construction program. Following the completion of the missile construction period, the Military should continue for some time at the 25-30 million level. In the field of Natural Resources , we find a tremendous element of diversity. Bentonite at Belle Fourche, Sugar Beets and sugar; Gold at Lead; Oil at Newcastle; Uranium Mill at Edgemont; Mica throughout the Hills; Lumber, Posts and Pulpwood industries; high interest in low grade iron ore deposits; significant mining of Beryllium and numerous other minerals are a part of the Natural Resources contributing to our economy. We have diversity in Industry with the State Cement Plan; Tri-State Milling Company; Rushmore Mobile Homes; The Rapid Traveler; quarrying industries; numerous home construc¬ tion supporting industries and building materials industries, jewlery manufacturing; Black Hills Packing Company and many of the industries mentioned in the Natural Resources category. In the field of Education , we have a State College, South Dakota School of Mines and Tech¬ nology, which is nationally recognized; a recently announced Catholic Girls Finishing School is under construction; the National School of Business, along with an outstanding public and parochial elementary system. We have a disproportionately large number of Construction Companies and related services such as Architects and Consulting Engineering firms. Our Transportation facilities include two large common carriers in the trucking field, two railroads, three airlines, several bus companies and numerous smaller trucking firms. Certainly, the Public Utilities aspect is growing and planning for the future through expan¬ sions such as the recent 3.3 million dollar water bond issue, and the more than 5 million dollar Generating Plant recently built by Black Hills Power & Light Company. As the largest community in a 350 mile radius, Retailing is an important segment along with all of the many Service establishments. Under Services, we also include the Professions, Medical and Dental clinics, Attorneys, two hospitals, etc. Without belaboring the point further, it is evident that Diversity has been the key to our long record of unusually strong growth patterns during the past 60 years. Our growth is not something that just took place in the past 10 or 20 years. It has been going on for 60 years. In looking at our economy, it can best be described as a circle. In a circle, there is no starting or stopping point. Everything is interrelated as illustrated in the chart on the following page. FUTURE PROJECTIONS ON POPULATION TRENDS Based upon past records and mathematical trends, understanding why we have grown, and relating the planning decisions of local utilities which are investing millions of dollars, this Com ¬ mittee established an assumption of a 51.2% growth factor per decade for the next 20 years. Some members of the Committee felt this is too conservative a figure, pointing out that all estimates about Rapid City have historically been too low. It was, however, the general con¬ sensus that 51.2% is a reasonable and defensible assumption. Using this figure, the following projections appear for Rapid City : 1960 1970 1980 34 42,399 64,107 96,929 > I RELATION TO AREA GROWTH In checking census figures for growth factors in the surrounding counties in our primary trade area, the Committee established a projected growth factor of 3.6% per decade in the trade territory outside of Rapid City. Using the Audit Bureau of Circulations report on the Rapid City Daily Journal circulation figures, they list a Retail trading population of 71,419 exclusive of the Rapid City population of 42,399. On this basis, the following figures reflect the growth of our area including Rapid City for the next two decades: 1960.113,818 1970.137,097 1980.173,582 RELATION TO U.S. GROWTH The 1960 Statistical Abstract of the United States Department of Commerce shows the follow¬ ing U.S. Population growth estimates: 1960.179,323,175.18.5% increase 1970.219,474,000.22.3% increase 1980.272,557,000.24.2% increase The national average growth per decade for the past 60 years has been 15.1% as compared to Rapid City's average for the same period of 83.4%. Comparing the Government's prediction of an increased national rate of growth for the next two decades and our local prediction of a de¬ creased rate of growth for the next two decades, it appears that our assumption of a 51.2% growth factor for Rapid City is a conservative figure. 35 JOB OPPORTUNITIES NEEDED IN RELATION TO PROJECTED GROWTH The relationship of employment to population is of basic concern to any present or future as¬ sumptions. The following information is presented by the local Employment Security Department: The Rapid City local office estimated 20,260 employed as of December 1960. The estimate was further classified by industry as follows: Industrial Group No. Employers Employees Mining, Quarrying 5 110 Contract construction 175 2850 Manufacturing 75 2400 Transportation, Communication, Public Utilities 55 1600 Wholesale and Retail Trade 540 6700 Finance, Insurance & Real Estate 150 3500 Service Industries 585 3750 Government Establishments 75 2000 1660 20,260 This estimate included workers employed on government projects (Titan, ICBM Base Complex) outside of the "metropolitan" area. Not included in the estimate was the number of workers en¬ gaged in farm employment in the country. At the time of the estimate, an approximate 1150 were unemployed. Seasonal unemployment in the Rapid City area normally peaks in January, February and March. After that time, demands in construction, wholesale and retail trade and in service industries begin to make inroads on the supply. The total civilian non-farm labor force of "metro¬ politan" Rapid City would then be: Total employed (est.) Total unemployed (est.) Total civilian labor force (est.) 20,260 . 1 ,150 A 21,410 ^ Since the civilian labor force is about 42% of the total population, a population of approximately 64,000 in 1970 would result in a labor force of 26,880. This is about 5,470 more than the present labor force. In 1980, a population of approximately 96,800 would project a labor force of 40,660 or about 19,250 new job opportunities. Observations on industry growth in the 1960's and 1970's: Contract construction - employment will continue to rise because of the growing number of house¬ holds, increasing expenditures for highways and military installations and the rising volume of business activity. Developments in methods and materials have made this industry less seasonal. Manufacturing - Growth may continue to be steady if unspectacular. Many small establishments have come into being to satisfy our ever growing and diversified needs. Service - High standards of living with a rising national income and more leisure time are ex¬ pected to be reflected beneficially in this industry group. Wholesale and Retail Trade - Employment will rise with a growing population and higher standards of living. No city in the wholesale and retail trade area served by Rapid City has grown sufficiently in recent decades to challenge our share of the market. Finance. Insurance and Real Estate - May expand rapidly in keeping with expected national trends due to the increasing complexity of our financial activities, rising levels of income and the growth of our urban society. 36 Transportation, Communications, Public Utilities - Job expansion will be geared in somewhat a direct ratio to demands for services in a growing community. Government - A largely unknown factor because of the local military installation. Jobs in govern¬ ment (excluding military) tend to increase as community and population growth are reflected in increased demands for services. Jobs directly affected by the needs of the military man continue to increase if we continue to live in the shadow of the "cold war". The selection of Rapid City for a vast missile complex (Titan and Minuteman) would seem to assure increasing job opportunities even if the arrival of the "operational missile age" reduces emphasis on manned aircraft. Agriculture - Continued declines in job opportunities as smaller operations are absorbed by larger operators who, by efficient utilization of modern methods and equipment, do not need to hire addi¬ tional workers. INFORMATION SOURCES U.S. Census of Population 1960 - U.S. Department of Commerce Bureau of the Census South Dakota Employment Security Department U.S. Department of Labor-Bureau of Labor Statistics Audit Bureau of Circulations U.S. Department of Commerce Water System Study, 1959 Business Survey and Market Guide - Rapid City Daily Journal Sales Management Survey of Buying Power, 1961 1960 Statistical Abstract, U.S. Department of Commerce 37 Chapter VI SELECTING THE PRIORITIES COMMITTEE The Priorities Committee must assume responsibility for one of the most, if not the most important function in the entire community development program. It makes the original recom¬ mendation of the priority items to be included in the community-wide program of work. Later it is concerned with policy problems which arise in the implementation of the total program. The function of individuals selected for the committee is similar to that of members of a board of directors. They are not directly concerned with management. However, they set policies for management and they continuously test the results of current operations to make certain that the program is getting the results expected of it. While their duties may not be time consuming, they are very important. Essentiality of the Committee Some question may be raised about the necessity of the Priorities Committee, particularly if a steering committee has been appointed as suggested in Chapter IV. The possibility of dupli¬ cation or conflict has been suggested. The proper distinction between the two can be suggested easily. The steering committee is concerned with the details of the program and with the management which has been shown to be necessary in connection with the thirteen step procedure. The Priorities Committee holds itself aloof from deep involvement in the thirteen steps so that its members can pass judgment im¬ partially on the work of the Resource Persons and can make priority recommendations of its own. Members of the Priorities Committee should be the best qualified persons in the community to decide about the practicability and essential priority of projects. In many cases they will be the persons who have led campaigns for the United Giver’s Fund or the Community Chest, hospital drives, and special celebrations. They have the "know how" to get community support, to raise money, and to get projects completed. Their participation in the review of the case study analyses carries an implied commitment that, if the community accepts their recommended priorities, they will help to secure necessary finances and to implement the projects in the program of work. The Early Selection of Members In the sequence of steps in the community development program, the establishment of priority recommendations is delayed until Step No. 10. This is after the analysis of case study areas has been completed and possible courses of action have been outlined for each area. The question may be asked, "Why should Priorities Committee members be selected such a long time before they are expected to function?" Two substantial reasons for the early selection of members are set forth in the Leaders’ Guide* as follows: 1. Announcement of the names helps establish confidence in the entire community develop¬ ment program and helps in securing the participation of capable persons in other phases of the program. 2. Members will be able to follow each step in the plan and will gain a broad understanding on which to base judgments to be rendered as part of Step 10. Qualifications for Members Selection of Priorities Committee members may be the most difficult task of the community development program. This is because individuals selected must have qualifications higher than those required for any other part of the program. *See Foreword, Page 2 39 These qualifications can be stated better in broad terms of capacity and motivation than in terms of specific skills or experience. Some indication of the type of person to be sought is il¬ lustrated in the following quotation from, Community Leadership , one of the pamphlets of the Community Development Series :* Most of these persons will have shown an awareness that their communities are lacking in methods and machinery with which to handle important community development problems. They have ideas about what is needed. They may be advocating improved methods of comprehensive planning and community analysis. They may be concerned directly with the modernization of local government or with financing of community development. They may be leaders in urban renewal. Such persons recognize the necessity for public understanding and support. They see the need for effective citizen participation. They are willing to work informally to provide the pat¬ terns of community organization which are needed. Their leadership will be unchallenged be¬ cause of the soundness of their reasoning and the unselfishness with which they have been helping the community. Before these leaders can become a Community Development Team and emerge as the most vital force in any community, one problem of organizational relationships must be solved. This problem arises because these natural community leaders already hold positions of authority and responsibility in other organizations. Close identification with one particular group and its special interests may make heavy demands upon the available time of an individual leader and lessen the extent of his complete acceptance by the community. Before these leaders can achieve maximum effectiveness as Team members, they must subordinate the interests of their special groups and concentrate on the community-wide interests of the Team. Such a transition need not take place immediately but should be effected over a period of time. Case Study Results Recruitment of topflight persons to serve on the Priorities Committee has not been difficult in communities which have undertaken the program. Once these individuals are convinced that the program has real significance and that the step-by-step procedure can be effective, most of them are happy to serve. Perhaps the best way to indicate the extent of the success achieved by various localities in Priorities Committee recruitment is reflected in the following reports from various cities: Jacksonville Priorities Committee The following persons served on the Jacksonville Priorities Committee: Jack H. Quaritiu^, Chairman Executive Vice President, Peninsular Life Insurance Company Executive Secretary Central Labor Union President, Barnett National Bank President and Chairman of the Board, Independent Life Insurance Company Vice President, Prudential Insurance Company of America Vice President for Area Councils Jacksonville Area Chamber of Commerce President, J. H. Coppedge Company *See Foreword, page 2 C. A. Alexander William Barnett Jacob F. Bryan, III Charles W. Campbell W. T. Christy J. H. Coppedge 40 John D. Corse D. T. Ehrmann W. H. Freeman R. Frank Gay William K. Jackson Louis Kimball R. C. Millar Mrs. R. L. Miller Dr. Benjamin F. Rogers Joseph C. Sessions Finley H. Tucker, Jr. James Watson Lindy Willis Attorney at Law Ulmer, Murchison, Kent, Ashby and Ball President Florida National Bank of Jacksonville Executive Vice President, First National Beach Bank, Jacksonville Beach Manager, J. C. Penny Company Architect, Kemp, Bunch and Jackson President, Southern Packaging Service President, Florida Publishing Company Civic Worker Vice President and Dean, Jacksonville University President, Duval County Civic Association President, Finley Tucker Bros. Inc. Duval County Agent Architect, First Vice President, Jacksonville Junior Chamber of Commerce This particular selection seems to have been made for the dual purpose of (1) cashing in on the experience of elder statesmen of the community, and (2) gaining cooperation from powerful organizations and interests which could assure the success of the program of work after its adoption. The work of the Committee proceeded expeditiously with few meetings of the whole com¬ mittee marked by a high degree of agreement. Recommendations of the Committee were accepted almost unanimously when presented to representatives of citizens organizations at the second city-wide meeting. The Point Pleasant Priorities Committee In Point Pleasant, West Virginia, the Priorities Committee was constituted as an operating committee with most of its members directly responsible for other parts of the community de¬ velopment program. The organizational structure is indicated to some extent by the following identification of the members: Chairman, Seldon R. Flemming-Manager Moore's Store Secretary, Kathryn Avis Moore-Manager Joint Asst. Chairmen: Vitus Hartley, Jr. Virgil Siders Editor, Cecil Devrick President Mayor Managing Director Family Savings & Loan, Inc. City Ice & Fuel Company City of Point Pleasant Pt. Pleasant Chamber of Commerce 41 Problem Area Chairmen: Industrial Development O. C. Hall District Supt. Adj. to Advantages of Location & Natural Resources William Kusterman Production Engineer Compr. Community Planning & Urban Renewal James S. Stevens Asst. Personnel Mgr. Commercial Development A1 Biggs Owner & Manager Modernization of Local Government Robert M. Smith Asst. Prosecuting Attorney Mason County Court Housing Vitus Hartley, Jr. President City Ice & Fuel Company Publicity Harry Eastburn Public Relations Mason County Board of Education North Mason County Chairman Olsen Wright Mayor Mason City This division of labor within the community development program not only combines func¬ tions to be performed but also tends to make each member of the Priorities Committee the champion of the project areas which have been his direct concern. Priority recommendations of this committee were adopted without substantial change. How¬ ever, some question now exists about the extent to which the complete support of the community has been mobilized behind the program. There is some indication that implementation of each project is being left largely in the hands of the Priorities Committee member in charge of the category from which the original recommendation came. Appalachian Power Company Kaiser Aluminum & Chemical Co. Kaiser Aluminum & Chemical Co. Biggs Department Store The York, Pennsylvania Priorities Committee In York, Pennsylvania the role of the Priorities Committee differs from that of any other committee. Membership of the committee is unusually large, including the following: Dr. John C. Albohm L. C. Allenbrand Lester L. Buchart Melvin Campbell Rev. Richard Crawford Superintendent, York City School District Plant Manager, Caterpillar Tractor Company Vice President, Buchart Engineering Company Executive Vice President, Campbell Chain Company Secretary, York County Council of Churches 42 Robert Emswiler P. H. Glatfelter III LaVern E. Grandy Earl P. Herting M. S. Grumbacher Henry B. Leader, Esq. Mrs. Anna S. Ramage Henry D. Schmidt Mrs. Nellie L. Stein William C. Wagner John D. Zimmerman Business Agent, York Labor Temple President, P. H. Glatfelter Company Vice President, York Telephone and Telegraph Company Vice President and Manager, The Clarke Mortgage Company Vice President and General Manager, The Bon Ton Department Store Stock & Leader Partner, Ramclif Supply Company (Retired President), Schmidt & Ault Paper Company Partner, Stein Insurance Agency President, York Bank & Trust Company Secretary, Wolf Supply Company Beauchamp Smith (retired) This Priorities Committee was set up to serve as an executive committee or board of di¬ rectors charged with the responsibility of planning and organizing the community development program from scratch. Meeting weekly at lunch, the committee first organized the Assumptions Committee to develop a picture of York’s potential growth 10 to 20 years hence. This was to be the basis on which all sub-committees were to make their analyses of needs. At the same time, members of the Priorities Committee were assigned to one of the 7 categories set up to be analyzed. The two or three committee members assigned were then charged with the responsibility of securing the leadership to organize study committees — one for each of the areas that it was agreed should be covered by the analysis. Upon receipt of the reports from the various study committees in a category, the committee members assigned to that particular category reviewed the reports and their recommendations. Then they were charged with the responsibility of summarizing these reports and submitting the major recommendations to the Priorities Committee for their consideration. In this manner, the Priorities Committee plans to develop a preliminary draft of all the proposed recommendations submitted; and after careful study, the committee aims to draft a final recommended program of work for submission to its Citizens Council — an organization composed of two representatives designated from each of 125 local, civic organizations. This Council will have the opportunity to consider each of the recommendations, accept or reject them, and determine finally the priority to be given to each. Interest is at such a high level that frequently members will complain when any regular meeting is cancelled as over the Christmas and New Years holidays. The comment of one of the committee members, who was formerly chairman of the York Redevelopment Authority and later a candidate for Mayor, was that "an advisory committee com¬ posed of individuals such as we have represented on the priority committee is exactly what we should have had to guide us in the early stages of our redevelopment program. However, if you would have told me that it would have been possible to get 17 people of this calibre to serve on a committee such as this, I would have told you that it was impossible. But the fact now is that we have such a group assembled and working with enthusiasm on our Priorities Committee." 43 Chapter VII THE FIRST CITY-WIDE MEETING The community development program, from the moment of its inception, presents a public relations problem. People hear about it. They want to know what it is, how it operates, and how it is likely to affect activities and interests in which they already are involved. Publicity-wise, the traditional approach to community problem-solving is easier to handle than the community development program. That is, the traditional approach generates a story very much as any other piece of news. A proposed activity is described, names of those as¬ sociated with the effort are reported and the best possible picture is given of what the program is designed to accomplish. Of course, such a story implies responsibility assumed by the individuals named. This may prevent cooperation from persons who are excluded from the announcement if their participation is found to be desirable as the program unfolds. The story may actually arouse concern or possible antagonism on the part of individuals and organizations already engaged in similar activities. Nevertheless it makes a good news item and will hardly be overlooked by the local communications media. The community development program, at its inception, does not lend itself to that kind of publicity. This particular program involves a division of labor which is difficult to describe. If the study course (Step I) is publicized, prematurely, many persons may get the impression that it constitutes the entire program. If premature announcement is made of the thirteen-step procedure, the details may be confusing and may raise doubts about the feasibility of the entire program. Only after Step 4 has been completed does the community development program acquire enough form and substance to justify publicity. Avoidance of publicity beyond that point, however, can be as damaging as premature publicity. Silence or delay can interfere with the effort to at¬ tract and involve many persons in the program, and to build widespread public understanding and support. Experience indicates that the best way to make a good, acceptable public announcement of the program is to call a meeting to which all interested persons are invited. Invitations should be issued well in advance. Sufficient time should be allocated during the meeting to permit an ex¬ tensive explanation to be made. Frequently a luncheon or dinner meeting affords the best setting. It should be borne in mind that no completely convincing explanation of the total program can be made in one meeting. The public announcement must be followed by repeated explanations to various groups and by showing individuals who are asked to participate just how their contribution fits into the overall picture. A need for explanations in one manner or another will continue as long as the program is in operation. Invitations to the Meeting Before invitations are issued, the meeting should be planned so that it has maximum appeal to community leaders. For example, the name of the meeting should be changed from the "First City-wide Meeting" to some local name with a pleasing connotation. While care should be taken to emphasize the meeting is open to all interested persons, special effort should be made to assure the attendance of those who are expected to play an active role in completing any of the thirteen steps. Representation should be encouraged from the en¬ tire metropolitan area as well as from the city. There should be special concentration to obtain the presence of representatives from the three groups described as follows in the Leaders' Guide*: 1. Public officials — They will be deeply involved in both the analysis and action part of the plan and should be acquainted with it from the beginning. *See Foreword, page 2 45 2. Persons likely to be called upon to assist in analyzing problem areas — Each of these persons will have special qualifications which are related to one or more of the problem areas to be analyzed. Attendance at the meeting will show how their effort will fit into the total plan, thus having an important effect on the attitude with which they approach their assignments. 3. Leaders of all responsible citizens' organizations — Most citizens' organizations have specific programs of their own. They are also frequently invited to give their support to programs of other organizations. Some of these groups are so deeply com¬ mitted to various causes that they are trying to reduce rather than to expand their activities. If these organizations are to contribute effectively to the creation of a program of work for community development, they should be informed from the be¬ ginning about what is being planned, how they can make suggestions about problems and action needed, when their participation will be most helpful, the nature of that participation, and how their efforts will be combined with the efforts of other organi¬ zations to produce more comprehensive and constructive problem solving action for community development than any single organization can produce by itself. Obviously communications outlets within the community should be invited. Newspapers, radio and television stations should be given the courtesy of advance briefings on what will be presented at the meeting, lists of names of persons committed to the program, and background information about the principles and procedures to be followed. Agenda for the Meeting The meeting must be planned with several objectives in mind, and every effort made to achieve each to the fullest extent possible. One of the most important objectives is to reassure those already involved in community development that the proposed program can be beneficial rather than harmful to their current activity. It must be clearly shown that the proposed program will not interfere with what they are attempting to do. It must also be shown that success for the community development program may enhance and carry their program with it. A second objective must be to obtain pledges of active cooperation from as many individuals and organizations as possible to work on specific parts of the total program. While the roles many are to play will not be identified until later, the more ground work the meeting can lay for the ultimate accomplishment of program objectives, the better is likely to be the prospect for success. A third objective should be the presentation of a description of the ultimate goal in terms so specific and convincing that people will accept the program as both practical and feasible. The extent of acceptance of the program will hinge largely on the manner in which the "sales" presenta¬ tion is made. To achieve these objectives, at least three separate presentations should be made, probably by different speakers. Each speech should have its special emphasis. The ground to be covered can be suggested by the following brief outlines of the speeches: Speech No. 1 The opening remarks should be delivered by a member of the community closely associated with existing efforts for community improvement. The Mayor or the head of an important civic association could be the most logical choice for this role. At the outset, he should lay emphasis upon the many accomplishments of the community. Recognition should be given the work of the city government. There should be an enumeration of public projects which have been completed, are under way, or are about to be initiated. 46 The work of voluntary organizations also should be stressed. Outstanding examples of community service should be applauded. The availability of completed surveys should be re¬ ported and proposals for additional improvements commended. The need and the will for further improvement also should be cited. Those present who have been in the forefront of community projects will be the most knowledgeable of how much re¬ mains to be done. They will be aware of the necessity for more and better planning, the im¬ portance of acquiring better tools with which to work, and the essentiality of creating a broad base of understanding and agreement on which the people of the community can move forward together. This speaker should make no effort to sell the community development program to the audience. He should be speaking for the audience in outlining the specifications which the pro¬ gram must meet if it is to win local public support. He should emphasize, however, that the program should be given every opportunity to prove its worth. Speech No. 2 The second speech should explain how the community development program differs from any other and why it can accomplish what other programs have failed to do. The speaker should emphasize the different principles and procedures which will be applied. He should explain the background of research and development lying behind the program and giving it the best possible assurance of its success. This speaker’s remarks could include a comparison of various alternatives at the disposal of the community. For example, some of those present may think federal subsidies offer the best way to accomplish the upgrading of the community. These persons should not be antagonized. But the record should be recited to demonstrate that the results have shown federal aid to be less than a panacea. It can be shown convincingly that there is no evidence that the federal route is always the best one to travel. The community development program should be presented as a new and promising alterna¬ tive. The division of labor involved should be explained to show the increased opportunities provided by the program for extensive citizen participation. Those present should be assured that they are needed and can have a part in the mobilization of total community resources and in the formulation of a program of work on which people generally can cooperate. This speech should make no attempt to explain the details of the program. However, it could include an explanation of what has been done locally to get the program ready for this particular meeting. It could also carry the announcement of names of the persons already committed to participation in the program. Such evidence of progress will tend to build confidence in the program. Speech No. 3 This speech should go into the specifics of the community development program. It should touch on each of the thirteen steps in the approved procedure, showing what each is intended to ac¬ complish and how each is coordinated with the other steps to produce a total program. Emphasis should be put on the point that this particular procedure can produce decisions and actions on which all people of the community can work together to get things done. The speaker should be an individual who has completed the study course prescribed in Chapter II and who has participated in the planning of the entire program. This person should understand what is involved in each of the steps and how the successful completion of each step can be assured. He should inspire confidence and enthusiasm among participants in the meeting, and gain from them assurances of cooperation in the execution of any part of the program to which they may be assigned. He also should be prepared to answer any questions about procedure which may arise from the audience. 47 A Possible Fourth Speech If the Assumptions Committee has completed its work prior to the meeting, the Committee’s report should be presented as a local case study by a fourth speaker. His talk should indicate the importance of the job undertaken, the kinds of special qualifications required of individuals, those in whom these qualifications were found, the way differences of opinion were resolved, the time consumed in preparation of the report, and the value of the report to all other Resource Persons who will be asked to work on case study analyses. Help in Preparing Speeches Care should be taken in the selection of individuals to make the above speeches. Each in¬ dividual should be assured of substantial aid in the preparation of his particular speech to make it interesting and convincing. One promising source of help is to obtain the cooperation of a good speaker from another community which has completed the community development program. He can explain in detail how the step-by-step procedure worked. A report on a successful program can be more con¬ vincing than any explanation of what is to be attempted. Other sources of informational aid for speakers are contained in the reading materials specified in the study course. They spell out what is involved and how local procedures can be formulated. Typical Questions About the Community Development Program Experiences recorded at many initial city-wide meetings indicate that certain basic ques¬ tions are likely to be asked by participants. Some typical questions are set forth below along with the type of answers intended to help achieve a common understanding which all groups should have. Question No. 1 How does this suggested program differ from what we are now doing? Suggested Outline for Answer The big difference is a matter of technique. In most existing local activities, some individual, agency, or organization has undertaken to initiate an activity and to see it through to an end. The sponsor is concerned with all phases of the activity even though many different skills are involved. The sponsor will not always be able to secure the broad base of public support required to make the project successful. The community development program uses a very different technique. It breaks the total job down into a number of parts or steps, secures the most qualified persons available for the completion of each step and coordinates all the steps so that a total solution is achieved. This is made possible by a division of labor which permits many persons to work on almost every project while at the same time preventing control of any activity by any single organization or interest. There need be no conflict between this new technique and what the community is now doing. To the extent that problems are now being solved, the existing patterns of action would be ac¬ cepted and supported as part of the step-by-step procedure. Where problems are not now being solved the new technique would mobilize new resources under new procedures to get the needed decisions and action. (Advance preparation for the meeting should include the gathering of local examples to which the new techniques should and should not be applied.) Question No. 2 How much will this new technique cost and where will the money come from? Suggested Outline for Answer The best answer is for some representative of the sponsoring organization to report on how much has been accomplished with little or no cash outlay and to state what arrangements have already been completed for office space and supplies, and for management services. 48 Non-cash contributions will be made by many persons in the form of time and effort to attend meetings and help prepare reports. Each person will be his own judge of the extent of his contribution. Demands on any one individual should not be excessive. Once a program of work has been completed, additional funds will undoubtedly be re¬ quired for financing projects to which a high priority is assigned. But the financing of these projects will have been considered carefully in connection with their priority selection and enough assurances of public support will be available to give maximum assurances of success. Before the answer to this question is completed, the actual estimate of cash outlay pre¬ pared by the steering committee should be stated. The amount should not exceed $1,000. The source of these funds should be given together with the assurance that the funds are actually available and that no requests for financing the thirteen steps will be made. Question No. 3 What are the limitations on the new technique? Suggested Outline for Answer The limitations which the people of this community and area put upon it by their decisions. The technique has none of the inherent limitations frequently provided by geographic boundary lines, by legal charters and regulations which also impose restrictions and by the limited qualifications of some of the individuals and organizations which undertake programs. This technique enables a community to deal with highly controversial issues without involving individuals in the controversy. It can range far and wide. It can mobilize resources not available to most other programs. It can combine research and planning with decisiors and action. Its usefulness depends upon the kind of cooperation which people generally are willing to extend. Without the cooperation of a large number of persons such as those in attendance at the meeting, the technique can be useless. Question No. 4 What is expected of those present? Suggested Outline for Answer The answer to that question will be very different for different persons. Some persons will be asked to volunteer for service almost immediately in connection with the analysis of some specific problem for which they have special qualifications. They will be individually invited to serve. Others will be called upon at a later date. This is not because their service is any less important but because they will be invited to serve in connection with different steps which will be reached later in the procedure. Question No. 5 What happens after this First City-wide Meeting? Suggested Outline for Answer This meeting is the kick-off for the community development program in this area. All arrangements have been completed to begin the work of case study area identification and analysis immediately. In a matter of days many individuals will be asked to take part. The purpose of the meeting has been to inform as many individuals as possible, about the total program so that they will understand the relationship of what they may be called upon to do. None of those present are expected to pass judgment on the total program at this early stage in its development. Each can determine the extent of his cooperation as specific requests for his assistance are made. 49 Later, after the identification and analysis of the case study areas are complete, an op¬ portunity to pass judgment will be provided. A set of priority recommendations, based on the analyses, will be made public. After ample time has been provided for a study of the recom¬ mendations a Second City-wide Meeting will be held to determine the extent to which the peo¬ ple are prepared to provide understanding and support for the program. Then, if the evidence of support is strong enough to justify it, a program of work will be formulated for the entire community. This program can be extended indefinitely if the people demand it. Additional problems can be identified. Additional analyses can be made and priorities recommended. Additional city-wide meetings can be held to revise and extend the program of work. Over a period of years, a large number of priority projects may be completed to give the community its maxi¬ mum possibilities for growth and development. Case Study Experiences A review of the First City-wide Meetings held in a number of communities suggests several devices which may be used to improve the quality of the meetings and the extent of the public response. Aberdeen, South Dakota Prior to the call for the First City-wide Meeting in Aberdeen, South Dakota, a series of preparatory steps were taken. They were recited in the call of the meeting, part of which reads as follows: "On November 13th, through the cooperation of the Aberdeen Chamber of Commerce and the IDEA, Aberdeen participated in a pilot project for South Dakota. At that time, a sur¬ vey was made of the attitudes and opinions of the people of Aberdeen. Approximately 60 people of all walks of life were interviewed by members of the survey team. Over 40 hours of interviewing were accomplished. We feel that this will be a vital step towards the development of an overall Community Development Program, and we feel that every person who has an investment or lives in the city of Aberdeen or Brown County should be vitally interested in hearing the results of this survey. We certainly urge each and every one of you to attend this meeting. The results of the survey will be given to you by members of the survey team. Those participating include: University of South Dakota, South Dakota State College, Industrial Development Expansion Agency, Greater South Dakota Association, League of Municipalities, Northwestern Public Service, Northern Natural Gas, Northern States Power, Ottertail Power, and Montana-Dakota Utilities." To increase the clarity of the explanation at the meeting a series of slides were prepared. These have been useful since the meeting in explanations made to interested citizens organiza¬ tions. Fredericksburg, Virginia Six charts, five feet by five feet, were prepared and placed on easels to help with the ex¬ planation of the thirteen-step procedure at the first city-wide meeting held in Fredericksburg, Virginia. The charts listed the thirteen steps and outlined the pattern of organization which was to be followed in the implementation of the program. Joplin, Missouri Because Joplin, Missouri, was far advanced in its surveys when the need for the commu¬ nity development program was recognized, its approach to the First City-wide Meeting was somewhat unique. The agenda for the meeting called for the outline of the step-by-step proce¬ dure to be presented early in the meeting. This was followed by speeches indicating how far Joplin had gone and how easily it could pick up the program. 50 The last three speeches on the agenda, of five and ten minutes duration, were given under the following titles: Community Development Survey Results Action Tools Available Staffing for Action This procedure is effective only for communities which have completed a considerable part of the program and are clearly ready for implementation. It should never be used as a "short cut" in the establishment of a program. Rapid City, South Dakota In Rapid City, South Dakota, the First City-wide Meeting was a community wide affair. Invitations were extended to a large number of persons. Arrangements were made with a local television station to telecast the meeting so that it became available to all citizens. This served to stimulate great interest in the program. 51 PNlVCr fllNOiS Chapter VIII IDENTIFYING CASE STUDY AREAS The procedure used in identifying case study areas is probably the most unconventional part of the community development program. It makes provision for consideration of all the physical aspects of community development. It attempts to delay decisions and action on single areas until the possibilities of every area have been explored. The conventional approach to problems is very different. Frequently it involves only a simple question and a conclusion. The question is, "Are we faced with a real problem?" The conclusion is, "Let’s do something about it." The result of this approach to problem-solving can be chaos. Many groups move out in different directions. Each has one primary concern. Each is largely on its own. Seldom will it mobilize enough support to achieve any substantial success. But it will help divert strength from other causes and prevent the solution of problems requiring extensive cooperation. This ineffective approach usually demonstrates to the people of a community that such a limited ef¬ fort will not solve their problems. The reason for the diverse approach is understandable. Most citizens' organizations are aware of their limitations. They know that, on their own, they cannot deal effectively with vast complex problems of the community. Therefore, they usually select some small part of the total problem as their particular province. They seem to assume that, if they handle their part, other groups will tackle the other components, and in some miraculous fashion all par¬ tial solutions arrived at will mesh to provide a complete and total solution. This, sadly, is not the outcome. What actually happens in most communities has been described in the introductory para¬ graphs to Chapter I. Promoters of projects which constitute only partial solutions run into stone walls, as did Hallandale, Florida. Projects there were so interwoven with other community ac¬ tivities that separate efforts failed to bring about total solution. And the goal to be attained is a total solution, or none. An illustration of the difficulty encountered in almost every community may be found in the central business district, frequently described as the heart of the city. It is important to the growth and development of the entire community. Individual businessmen cannot by their own limited efforts revive and maintain a healthy condition in the central district. As soon as a group of businessmen determine to improve the central district, they find themselves involved in many other problems. For example, they discover that a plan for down¬ town must be related to a transportation plan which will insure access to the district from all parts of the area. Adequate parking must be provided to make downtown competitive with suburban shopping centers. To solve their problem businessmen must work with other groups concerned with different problems. By reciprocating with the other groups the businessmen will secure badly needed help in the attack upon their downtown problem. Because the conventional approach has failed repeatedly to solve community problems, the search for new procedures was instituted, culminating in the thirteen-step procedure de¬ veloped by the Chamber of Commerce of the United States — a procedure using a very different approach to the identification of areas for study and action. The thirteen-step procedure attempts to lay out, smorgasbord fashion, the many areas which should be examined and the various possible courses of action to be taken before any decisions are made. The procedure makes provision for the analysis of each area and for an 53 indication of the alternatives among which choices can be made. Only after this information is available, can any intelligent selection be made of projects on which the community should con¬ centrate to its best advantage. Categories of Activity The community development program is not unique in its emphasis on an inventory of pos¬ sible projects before a choice is made among projects. Checklists of one kind or another have been prepared by many organizations and have been used to advantage. If the only problem was to identify areas for study, many of these checklists, even though they are not really compre¬ hensive, could be of great help. One of the best examples of a comprehensive survey of a community is that developed by the General Electric Company. It takes into account a series of considerations relating to the community as a place in which to live as well as to work. This material has been the basis of similar studies in many communities. It produces one of the best descriptions of the assets and liabilities of a community that can be compiled by the people on a self-help basis. Unfortunately this, and similar approaches usually stop with a description of existing circumstances and do not indicate what can be done about them. Use of such an approach pro¬ duces a report which may be excellent in quality but which fails to generate decisions and ac¬ tion. The report soon gathers dust on library shelves while problems continue to accumulate and intensify. The one procedure taking into account every aspect of the physical development of a com¬ munity and coupling the analysis with decisions and action is that to which the case studies in this book apply. This specific procedure makes provision for the identification of a large num¬ ber of case study or problem area, for the analysis of each area, for the recommendation of specific priorities, and for a final democratic determination of the particular projects which are to be included in a community program of work. To insure the orderly consideration of all significant problem areas, the identification procedure described in Step No. 6 of the Leaders' Guide has been divided into the following categories: a. Adjustment to Advantages of Location and Natural Resources b. Industrial Development c. Commercial Development d. Comprehensive Community Planning e. Housing f. Urban Renewal g. Modernizing Local Government Every community recognizing the need for a comprehensive approach to its problem solv¬ ing will want to give consideration to all of these categories. Within each category a number of case study areas will be found. Some, if not all these areas, are suggested in the list of items to be found in the Table of Contents of this book under Chapter XI. A cursory examination of the Table of Contents will indicate the extent of the list's comprehensiveness. Initiating the Identification Procedure Basing the identification of case study areas on the proven experience of other communi¬ ties can save time and eliminate a source of possible confusion for communities which decide to use the community development program. 54 Members of the study course, or of the steering committee, can rapidly review the Table of Contents and make a tentative selection of items in each category to which considera¬ tion should be given. This list will be tentative and will be subject to alteration and addition as the analysis gets under way and as local circumstances become evident. However, preparation of such a tentative list will help initiate the case study analysis and constitute a basis for the initial selection of many of the Resource Persons who will be in charge of each analysis. In reviewing the Table of Contents, the steering committee can eliminate problems which obviously do not have local application and can add local items important enough to justify con¬ sideration. A local list can be prepared and made ready for distribution to participants in the program. If the list is ready by the time of the First City-wide Meeting, copies might be dis¬ tributed as part of the explanation of the program. The steering committee also may want to decide whether individual committees should be constituted and charged with making the analysis of each of the case study areas identified, or whether two or more study areas are sufficiently similar to permit their consideration by a single committee. In some cases steering committees have decided that a single committee should be constituted to deal with an entire category — this with the understanding that the committee would determine how the problem areas would be divided and analyzed. Such deci¬ sions, if made at an early date, help firm up calculations on the number of meetings that may be necessary, and the kind of timetable which will be realistic for the completion of the case study analyses. In any such effort to identify case study areas, the steering committee should make no effort to evaluate the importance of a given case study area. Specifically, it should never pre¬ sume to decide that no need exists for the analysis of a particular subject and that, therefore, the item can be dropped from the list. The reason for avoiding this kind of judgment grows out of some of the uses to which the case study reports may be put. Industries from outside the community may be interested in getting a picture of the community for site selection purposes. A particular industry may be very much concerned about water supply. The industry is not likely to be satisfied with local assurances that no water problem exists. Instead the industry will want to know the source of water supply, its chemical analysis, the pressure at which it is delivered, and the quantity available in relation to probable future needs. A good report on this subject incorporated in the community workbook may help attract the industry to the community. Once the steering committee has created a sufficient basis upon which Resource Persons can be recruited and the analysis initiated, its members should make no further attempt to exercise control over resultant action. The actual analysis of each case study area becomes the responsibility of the Resource Persons selected for that task. Case Study Results The identification procedure recommended above has been followed generally by most of the communities which have participated in the program. Where the procedure was followed closely no difficulties were encountered. Where deviation occurred, the possibility of difficul¬ ties increased. One deliberate deviation has been the practice of eliminating case study areas where no obvious problem exists. This not only makes the community workbook incomplete but it also may create misunderstanding and possible resentment on the part of citizens. The elimination of any area from consideration involves an element of judgment on the part of the study group or the steering committee. Others may not agree with that judgment. Indeed some important in¬ dividuals may be interested in a particular case study area. When it is eliminated, they lose interest in the program. They also may lose confidence in the leadership. This can have reper¬ cussions later when efforts are being made to obtain the support of the entire community behind the program. 55 A specific deliberate deviation from the recommended procedure should be mentioned. It took place in the smallest community which has undertaken the community development pro¬ gram. The alternate procedure followed is discussed below: Point Pleasant, West Virginia There was some hesitancy on the part of the sponsoring group to attempt the identifica¬ tion of problems on which attention should be focused. All of the original sponsors were from Point Pleasant, itself. They know that many of their problems reached far beyond the city and perhaps even beyond the county. Therefore, they determined to delay identification of case study areas until a clearer picture could be formed. The procedure in Point Pleasant was to put the selection of Resource Persons ahead of the identification of problems. This was made possible by accepting the categories as outlined above and appointing a chairman to be responsible for the development of each category. He was empowered to make his own identification of case study areas and recruit the necessary personnel to complete the analysis. The results of this procedure will be considered further in Chapter IX. 56 Chapter IX SELECTING RESOURCE PERSONS In previous chapters numerous references have been made to Resource Persons without any sharp definition of who they were or what their roles were in the community development program. The point has been reached where any possible confusion should be dispelled. Resource Persons are individuals selected to help in the analysis of one or more of the case study areas which may be identified. Each of these individuals is considered to be quali¬ fied either through training or experience to contribute directly to the clarification of a prob¬ lem and to the formulation of courses of action which can lead to solution of the problem. Each works with other Resource Persons on the preparation of a report. It will be a definitive state¬ ment about an assigned case study area, that governs all further consideration of that area. This approach to community development creates a division of labor in which many persons will be used, each making a contribution according to his special qualifications. This contrasts with the traditional division of labor in public affairs in which relatively few experts undertake to make analyses and prepare recommendations for the people. The validity of this new approach will be questioned from time to time. A number of per¬ sons may suggest that so many skills will be involved in the analysis of all case study areas identified, that the community cannot fill the need. They may ask,"what assurance can be given that the reports produced by the various Resource Persons will be adequate as a basis for mak¬ ing decisions and taking action?" Availability of Local Talent In answering such a question, first, acknowledge that some of the case study area reports will be less than perfect, but predict that the average level of performance will be surprisingly high. Point out that this is because of the high quality of personnel available. Highly success¬ ful experience has resulted in every community where the program has been tried, it can be noted. None of these communities had available the experts whose services would be required for the traditional analysis. None had financial resources to pay for all the studies which it could have used to advantage. But every one of these communities has found that it could mobi¬ lize enough local talent to do the job needed as part of the thirteen-step procedure. Some indication of the qualifications of individuals selected as Resource Persons is given by the tabulation (on page 58) from the first eight communities to complete their programs of work. A careful study of these qualifications will suggest that Resource Persons actually used in the local analyses represent a range of talent and experience which no community could expect to hire on the commercial market. What some of the individuals may lack in professional or technical qualifications is far outweighed by their detailed knowledge of local problems, and what can be done about them. Securing Resource Person Participation How can persons of the caliber suggested by the tabulation be induced to participate in the community development program? This presents no problem. These persons generally already are interested in the case study areas for which they normally would be suggested and,frequently, are deeply involved in them. Their attitude is that, if anything important is to be done in these areas, they want to be a part of the activity. The only question in the minds of most of these persons is whether or not this particular program is promising enough to justify their time and energy. The appeal to these persons can be two-fold. On the one hand, they can be asked to help prepare a report which will indicate the status of their case study situation in the community. On the other hand, they can be shown that the opportunity for community-wide priority considera¬ tion for their areas of special interest depends on the quality of the report they prepare. 57 In community after community there is an absence of good analyses and reports with re¬ spect to many important case study areas. Preparation of such a report becomes an end prod¬ uct in itself — one of which Resource Persons can be proud. Completion of such a report will often be sufficient incentive to secure full cooperation from key individuals. A second incentive for their participation will be provided by this recognition of the op¬ portunity to improve the position of their special interest in relation to other interests of the community. They want to present the case study area of their concern in the best possible light so that it will win support from other groups and interests in the community. Such con¬ sideration is the only way to secure priority preference. Those who participate in the analysis of case study areas can be assured that their re¬ port will be considered on its merits and — if the evidence is sufficient — their project will receive priority attention. The Resource Persons need not worry about the quality of the op¬ position; they need be concerned only about the quality of the report which they prepare. Partial Tabulation of Qualifications Amarillo Texas Bloomington Indiana Erie Penna. Hallandale Florida Jacksonville Florida Point Pleasant W. Va. Rapid City S. Dak. Tampa Florida presidents or executive heads of corpora- tions 51 18 41 14 38 2 10 17 commercial operations executives 42 19 16 18 5 16 14 local governmental department heads 6 5 16 9 21 15 civic organization leaders 23 8 16 11 38 16 3 public and private agency administrative personnel 12 4 13 6 12 2 11 15 industrial administrative officials 2 11 8 26 independent public board and agency members 2 8 7 7 6 14 city, county and township commissioners 14 8 8 1 5 7 2 state officials 17 8 2 6 5 federal officials 14 5 1 1 5 2 local educational administrators 3 24 5 3 2 3 3 4 college presidents 3 1 1 3 college personnel 38 3 insurance executives 1 1 3 3 8 3 1 religious leaders 4 2 3 2 2 1 architects 1 3 1 6 8 1 appraisers 1 1 10 1 1 news media representatives 9 3 1 1 5 1 2 2 mayors 1 1 1 3 1 1 city manager 1 1 engineers 3 bankers 4 2 8 1 3 labor leaders 1 1 2 3 attorneys 3 2 2 2 7 realtors 21 4 3 12 3 wholesale and retail 15 certified public accountant 1 professional planning staff 1 1 7 medical advisors 3 1 14 4 58 Where these incentives have existed, no community has had difficulty enlisting the par¬ ticipation of the Resource Persons it has needed. The Burden on Resource Persons If the selection is made properly, each Resource Person will already be prepared by either training or experience for the analysis on which he is to work. He will need no further study or preparation. His problem is to find the time to learn what is needed and to attend meetings at which a report will be prepared. This involves a certain amount of orientation. He will want to know what he is expected to do and also the relationship of his effort to all the other analyzing that is being done on other case study areas. He will want to help prepare a report which will have maximum impact on the entire community development program. Every time a group of Resource Persons begins work on the analysis of an identified problem area, the entire program is on trial. If members of the group allow obstacles to arise which delay or prevent completion of a satisfactory report, they cast a reflection on the entire program. Word about the difficulties encountered can spread quickly throughout the community, creating an atmosphere unfavorable to the program. They have a responsibility both to them¬ selves and to the program to see that their job is done well and expeditiously. Such a favorable experience will tend to create confidence in and contribute to the success of the entire program. The burden on Resource Persons will never become excessive unless they attempt to do more than is required of them. In some communities certain individuals have not been satis¬ fied in playing the role assigned to them. Instead of recognizing the necessity of the division of labor they have tried to assume responsibilities assigned to others. They have attempted to compel the Resource Persons to initiate decisions and action without reference to the Priori¬ ties Committee or the Second City-wide Meeting. Where this backbreaking task has been at¬ tempted, it has failed to achieve the result sought. The exact procedure to be followed in the preparation of the report, which is the lone, major assignment of the Resource Persons, will be described in Chapter X. However, every assurance can be given to prospective Resource Persons that the burden upon them will not be excessive. Case Study Experiences Almost universally, when they are first brought together to work on a case study area the Resource Persons ask for more information about their job and its relation to the entire com¬ munity development program. Their productivity is heightened if each participant can be made to feel that his part in the program is important and that the report of his group should be a good one. He should be given emphatic assurance that the report will be given careful con¬ sideration by the Priorities Committee and that it may have substantial effect on the program of work finally formulated for the entire community. In certain communities, a situtation will arise in which an individual with strong convic¬ tions about what should be done in his case study area will try to impose his convictions on the other Resource Persons. If any such practice is allowed, the validity of the entire procedure is threatened. Each group of Resource Persons must be concerned with the production of a well balanced report in which all points of view are given fair representation and from which any at¬ tempt at making a final determination is excluded. Procedures for this purpose will be sug¬ gested in Chapter X. In some instances individual Resource Persons seem to have felt that the report on their case study area becomes a threat to their position. For example, planning consultants may feel that the need for their services is diminished by the community development program. The fact is that, in general, the community development program will increase rather than diminish the requirement for technicians and experts. But the role of the expert will be different. He will be only one of the many voices involved in planning the program. His great opportunity will come through the division of labor which lets him help plan and also gives him a much larger role in the implementation of planning after final commitments have been made. 59 Resource Persons are always the final judges of their own product. They are responsible for preparing their own report. This report is not subject to revision by any other group or individuals connected with the community development program. The report will be passed upon by the Priorities Committee but it will not be changed. To show how much the suggested pattern for selection of Resource Persons is subject to modification and change, the experience of Point Pleasant, West Virginia, may be significant enough to deserve specific reporting as follows: Point Pleasant, West Virginia As was suggested in the preceding chapter, in Point Pleasant, the selection of Resource Persons preceded the identification of case study areas. The selection was related to cate¬ gories of community development activities rather than the identification of actual case study areas. The procedure followed was to select a chairman for each of the seven categories set forth in Chapter VIII. That individual was allowed to make his own review of the problem areas in his category, select the persons whom he considered most able to get the analysis made, and proceed with the preparation of case study reports on each problem identified. No one except the chairman and his colleagues knew just what the analysis would cover until the reports were completed. Experience with this procedure was not entirely satisfactory. While the procedure was simplified, the division of labor was not preserved as intended. The men in charge of prepar¬ ing the case study reports constituted a majority of the Priorities Committee which was to pass judgment on the reports. This tended to exclude broad public considerations. They should be controlling and appear to be essential if wide public support is to be secured for implement¬ ing the program of work when it is finally completed. t 60 Chapter X METHODS OF CASE STUDY ANALYSIS Because of the large number of persons involved in case study analysis, some standardi¬ zation of procedures is necessary to avoid reporting inequalities and incompatibility of results. Every case study report will be subject to evaluation by the Priorities Committee, and possi¬ bly by the Second City-wide Meeting. Each report should be prepared in a manner which will insure its most favorable consideration. Reassuring the Individual Upon notification of his selection as a Resource Person, an individual will want to know why he was selected, what he is expected to do, with whom he will work, what kind of a report they are expected to produce, and what will happen to the report. He must be assured that, upon agreeing to serve, he will have an opportunity to present his views and that they will be reflected in the final report. The amount of assurance to forestall hesitancy which can be given will depend largely on the exactness with which the recommended procedures are followed. Evidence seems to in¬ dicate that, where procedures are followed to the letter, the interests of all participants are protected. This is due not so much to planning but to characteristics which seem to be inherent in sound methods of analysis. Among these characteristics are the following: 1. Facts are almost completely non-controversial Resource Persons selected to deal with any particular problem are likely to have a com¬ mon body of facts on which they can agree. In a given locality matters of fact are subject to such easy verification that no reasonable person is likely to make claims which he cannot readily substantiate. While wide differences of opinion may exist about what course of action should be followed, this does not alter the facts. That is why the procedure set forth in the Leaders' Guide under Step 8 carefully differentiates the reporting of facts and the expressions of opinion about the courses of action to be followed. 2. Early agreement on facts, minimizes need for documentation. Most experts in problem analysis anticipate some disagreement with their findings. Therefore, they try to document facts in great detail to forestall criticism. This procedure frequently results in reports which are cumbersome and difficult to work with. In the community development program, the Resource Persons need only to satisfy them¬ selves about the facts. Once they are in agreement, no further documentation is necessary. This simplifies the report and allows attention to be shifted to the point where real differences are likely to be found, that is, deciding how the facts are to be translated into acceptable courses of action. 3. All significant differences of opinion should be reflected in the report. Various courses of action may be possible in the solution of any problem. Resource Per¬ sons should not attempt to reach agreement on a single course to be recommended in the report. That procedure, resting largely upon a consensus of opinion, can eliminate minority considera¬ tions and prejudice the free choice of the people. The format prescribed by the Leaders' Guide specifically requires a statement of the various courses of action which might provide a solution. This gives to every Resource Person the right to state his particular point of view. If there are five persons working on a problem, there may be as many as five different courses of action proposed. Each one should go into the report in a form satisfactory to its advocate. This helps to create a comprehensive basis for action by the Priorities Committee. Of course, where Resource Persons are in agreement about the course of action to be followed, this fact should be recorded in the report and no effort made to suggest alternatives. Consideration of a report on which agreement has been reached is greatly facilitated. 61 How to Prepare Case Study Reports The principal obligation of all Resource Persons is to help produce the best possible anal¬ ysis and report on each case study area to which they are assigned. This purpose will be facil¬ itated if, at the time a person is selected, he is given the most complete information available about ways in which his job can be completed expeditiously, including information about how Resource Persons in other communities have done similar work. To speed preparation of a report and to insure its comparability with other reports prepared by other Resource Persons, a standard format has been prescribed in the Leaders' Guide* as follows: 1. The Area to be Studied (listed serially for identification purposes). 2. Title (description of the problem area). 3. Resource Persons (listing the names, titles and organizations of the persons selected to provide local information and analyses). 4. Basic Facts and Comment (setting forth the essence of each of the areas studied including background material on how the problem developed, facts about its present status, and considerations which may contribute to possible courses of action). 5. Courses of Action (an indication of various alternatives which might lead to solutions of problems; a basis for choice). Information about what has been done in other communities can be provided through dis¬ tribution of looseleaf pages from this book which describe how a comparable case study was completed. If possible, a set of the looseleaf pages should be made available in advance to each Resource Person. At the first meeting of this group, a complete canvass should be made of the area to be covered and the relationship of that area to other parts of the community development program. Agreement should be reached quickly on the procedure to be followed in preparing the report. One of the first things to be done is to assemble the pertinent facts which should be in¬ cluded in the report. Previous and current published reports will be available from which much data can be taken. Individual Resource Persons may have information to contribute from their own private sources. If blank spots in the documentation are discovered, agreement should be reached on how additional needed data will be secured. As quickly as possible the Resource Persons should get to the discussion of alternate courses of action which might lead to a solution of identified problems. Provision must be made in the report for the presentation of every point of view which any Resource Person wants to express. If one Resource Person insists that his views on an issue be set forth at great length his wishes should be respected. In order to insure a balanced presentation under such circumstances, other suggested courses of action also must be similarly treated so the final results is a balanced presentation. Usually, when the advocate of special emphasis sees that his insistence on length gives him no special advantage, he will suggest that the description of all courses of action be reduced to reasonable proportions. Each Resource Person should be aware that no way exists by which he can force the total community development program to give high priority to a problem on which he is working or to select his course of action to the exclusion of all others if his problem is selected. His * See Foreword, page 2 t 62 contribution is completed when the report of his resource group is finished. The disposition of that report will be determined in subsequent steps of the community development program. Before the meeting is adjourned, the form of the report should be discussed. After the meeting, a rough draft of the report should be prepared as quickly as possible. This draft should be circulated to each Resource Person involved. Additions and revisions should be invited and time allowed for their submission. After suggested changes are received, a revised draft should be prepared and recirculated, perhaps after individual consultations with persons who suggest extensive alterations. Sometimes another meeting of the group may be necessary to agree on the report. A final draft should be produced at the earliest possible moment. The success with which this procedure can be applied to any case study area will be de¬ termined largely by the quality of the management planning done in Step 2 of the thirteen-step procedure. (See Chapter IV). For example, the completion of case study reports can be expedited by the editorial assistance of a specific person who attends all meetings, helps with preliminary drafts of reports and handles the mechanics of reproduction, circulation, and revisions. This job is perhaps the most demanding in the entire community development program. Relationship to Other Parts of the Procedure The report on each case study area becomes grist for the rest of the community development mill. Each report is sent initially to the Priorities Committee where it is given consideration in relation to all the other reports on the identified problems. The report may also become the basis for action by the community to carry out an approved program of work. What happens to each report will be determined partly by the quality of the report and partly by circumstances existing in the community. A clearly defined project which can be implemented quickly at small cost is much more likely to win community-wide support than a project of equal significance but with a more complicated and costly course of action. Many of the individuals who serve as Resource Persons also may participate in subsequent steps in the thirteen-step procedure. These persons should be careful not to confuse the capacities in which they serve. They should respect and clearly understand the division of labor involved. When they have finished a case study report they should let the report rest on its merits and should not try to use a subsequent assignment as leverage to get special consideration for their recom¬ mendations. Perversion of the procedure of this nature can undermine the validity of the entire community development program. Publicity In almost every community some effort will be made to release publicly the various case study reports as they are completed. Impressive arguments can be given both for and against this practice. The strongest argument against publicity is that none of the recommendations in any report has official status until it becomes part of the Priority Report or is incorporated in the program of work. Some widely publicized reports may be given an official blessing prematurely. This can cause confusion and perhaps conflict, particularly in the minds of persons who have been impressed by the publicity on some report and who cannot understand why it has not received more favorable treatment. Citizens who believe that some well-known project has failed to receive fair priority treatment may become prejudiced against the entire community development program. A number of arguments for publicity can be advanced. Publicity can inform Resource Persons of progress being made on problems other than their own. It can outline the kind of analysis to which the entire community is being subjected. It can help prepare representatives of citizens' organizations for the exercise of judgment which they will be called upon to make at the Second City-wide Meeting (Step 11) following the report of the Priorities Committee. One important precaution should be taken in connection with this step. Some of the reports may indicate a course of action so clear that some persons may want to implement it immediately without waiting for the Priorities Committee to act and the Second City-wide Meeting to be held. 63 This is to be discouraged rather than encouraged because it can set a precedent that may be harmful to the entire program. The purpose of the community development program is to formulate patterns of action on which all groups in the community can move forward together. The moment any one group chooses to go on its own, however sound the basis for its action, the solidarity of the community-wide effort is broken. Waiting until all groups and interests can be involved in the decisions and action, and until a program of work for the entire community can be approved by all participants, offers the only method of mobilizing all the resources that will be required to insure the success of the total program. In Amarillo, Texas, a most complete publicity program on the work of case study analysis was carried out. The Globe-News Publishing Company published a report on every one of the case studies. The result was highly beneficial. Television and radio editorial coverage was excellent on various phases of the reports, and wide advance coverage on the three television stations was given Town Hall meetings. Television and radio covered many of the meetings of committees and sub-committees during the actual prep¬ aration of the study. Not to be overlooked as a powerful communications tool for the program was the tremendous amount of word-of-mouth publicity given the study by the men and women who were working on the preparation of it. Case Study Experiences Not a single community has followed precisely the format and procedure specified by Step No. 8 in the Leaders' Guide. But every community has conformed to the procedure well enough to produce case study reports adequate for the community development program. Some of the actual patterns used will become evident in the detailed reports on case study areas which appear in Chapter XI. By using an appropriate one of these reports as a model, any community can be assured it will gain a reasonably successful analysis. 64 Chapter XI THE ANALYSIS OF CASE STUDY AREAS Most Resource Persons will gain confidence in their ability to play their part in the com¬ munity development program if they have available, as guides, copies of satisfactory analyses completed by their counterparts in other cities. Therefore the following case study analyses have been included in this volume. To stimulate the thinking of each Resource Person and to help him prepare for his maximum contribution on any subject or subjects assigned, copies of appropriate case studies should be put in his hands well in advance of the first meeting. Case studies included in this book have been drawn from a number of communities. In most cases the community is identified in the body of the case study report. However, emphasis should be put on the quality of the problem analysis rather than on the particular local circumstances to which the analysis may apply. For purposes of ready reference the various case studies are classified under the seven categories previously listed in Chapter VIII. Each category will be introduced with an individual index of case study areas appropriate for it. Use of Case Study Reports Communities undertaking the program have found that they do not identify as many case study areas as are reported in this chapter. Each community is free to make its own identification and give consideration only to case study areas which are significant to it. Some communities see fit to ignore individual case areas as such and to concentrate on the preparation of a single report on each of the seven categories. Each community must develop its pattern of analysis and reporting in the light of its par¬ ticular circumstances and needs. Once it has decided on those case study areas which are to be given consideration, the community should proceed with all possible speed to complete the report on each area. No further steps in the community development program should be taken until all the case study reports have been completed. Experience in several communities has indicated the possibility that delay in completing one or more of the case study reports can delay the entire program. Reasons for the delay have been found to include: the wrong person has been selected to organize the analysis and prepare the report, a lack of facts has been discovered which must be corrected before a report can be completed, or some Resource Person is not completely satisfied and wants to have changes or modifications made in some particular report before it is issued. While each cause of delay is understandable, measures to eliminate it must be taken as soon as the difficulty is discovered. Correction will be the responsibility of the steering com¬ mittee and the management services organization described in Chapter IV. 65 LOCATION AND NATURAL RESOURCES CATEGORY A ADJUSTMENT TO LOCATION AND NATURAL RESOURCES CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY AREA NO. A1 AREA NO. A2 AREA NO. A3 AREA NO. A4 AREA NO. A5 AREA NO. A6 AREA NO. A7 AREA NO. A8 AREA NO. A9 AREA NO. A10 AREA NO. All AREA NO. A12 AREA NO. A13 AREA NO. A14 AREA NO. A15 AREA NO. A16 AREA NO. A17 AREA NO. A18 AREA'NO. A19 AREA NO. A20 AREA NO. A21 LAND WATER POLLUTION - AIR, WATER AND LAND CLIMATE AGRICULTURE SEWERS AND DRAINAGE PORT AND WATER TRANSPORTATION FISHERIES GAS ELECTRICITY COMMUNICATIONS AIR TRANSPORTATION RAILROADS HIGHWAYS MOTOR TRUCK TRANSPORTATION INTER-CITY BUS TRANSPORTATION TOURIST ACTIVITIES CONVENTION PROMOTION RELIGIOUS RESOURCES RECREATIONAL RESOURCES CULTURAL RESOURCES 67 CASE STUDY AREA NO. A1 LAND RESOURCE PERSONS John W. Bergstrom Leonard Nowak Matthew Stegner R. B. Way Carl Wright Program Consultant, Erie County Agricultural Extension Office Erie City Planning Director Erie County Planning Director Way Realty Company Realtor BASIC FACTS AND COMMENTS Geology gives unmistakable evidence that the present site of Erie was at one time completely under water. Then, the Great Lakes drained into the Atlantic Ocean through the Mohawk and Hudson River Valleys. As glaciers receded, the Lake fell to its present water level. The shoreline is a plain which rises gradually and almost continuously until, at a distance of about fifteen miles from the Lake, it forms a ridge with an elevation of about 800 to 1000 feet above the level of the Lake. North and west of the ridge, the slope is split by a series of ravines or gorges, made by streams which drain into the Lake. South and east of the ridge lie rolling hills drained by French Creek, which flows south and eventually joins the Allegheny River. Farther east is a rugged terrain which possesses great forest reserves and is the basis for an important wood and paper products industry. This terrain also helps provide the fishing, hunting and recreation for which the Erie area is famous. Most of the land in Erie County has been, and continues to be, used in agriculture. Forest and farm products have been the biggest factor in the growth of the County outside the City of Erie, and have contributed much to the City itself. The first sawmills secured their raw materials from nearby forests, and soon began providing finished lumber with which to replace crude logs as the material for home building. The farms in the area have consistently produced more of certain crops than could be consumed locally, thus helping to create an export market for both raw and finished products. The geology of the land underlying Erie is such that sub-surface resources give little promise of any great contribution to the community. The bedrock is mostly shale or limestone. Oil found in the immediate vicinity has been negligible. Possibilities for gas exist and are being explored, but, to date, no promising developments have occurred. Stone quarries have operated success¬ fully, but not on any large scale. Gravel extracted from the area is of a very high quality, and is used in making concrete for both highways and structural purposes. Abundant clay, suitable for brickmaking, is also available. Perhaps the most promising sub-surface possibility lies in extensive deposits of salt known to exist in the area. These may be the natural resource on which an important new chemical in¬ dustry can be built. An examination of existing land-use patterns in Erie County reveals extensive problems which surely will affect the future growth potentialities of the area. One way to suggest what may be involved is to discuss briefly some of the more important of these land uses. Agriculture In Erie County, agriculture makes use of 315,000 acres or roughly 60.6% of the total land area. In the County are 3,318 farms. Two hundred and forty-five of these farms are under ten acres in size. Only six farms contain over 1,000 acres. 69 Case Study Area No. A1 LAND This agricultural area is continuously being decreased because of competing land uses. Land for the highest and best agricultural uses is seldom worth more than $1,200 per acre. When this land is put to industrial, commercial or residential use, the price may be increased greatly. Economic incentive, therefore, dictates that this land will gradually go out of agriculture and into urban use as fast as population expansion justifies. The seriousness of this predicament can be suggested by a single example. Directly north¬ east of Erie, in the path of urban expansion, is one of a relatively few areas in the United States suitable for growing Concord grapes. If this land is to be kept in agriculture, competing land uses must be eliminated. Some public protection such as zoning must be provided. This pos¬ sibility will be considered later in this Workbook. Industrial Land Land in many parts of the Erie area is being converted to industrial use. Some of this land is near the Lake where heavy industry with extensive water requirements must be located. Some industrial land is along the lines of the principal railroads, where, traditionally, industry has had special transportation advantages. Some is scattered throughout the area. This scattering is made possible and even encouraged by the general availability of adequate power and good transportation. The Erie area is under pressure not only to bring in new industry, but also to relocate successfully some of its existing plants. The relocation problem arises because many old and successful industrial plants have outgrown their present locations. While some of the plant man¬ agers would like to expand where they are, they encounter difficulties because adjacent land cannot be acquired at reasonable prices. Many of these companies hesitate to relocate elsewhere in the area because of the costs involved. They need help to secure the right land at the right price. Erie is now trying to establish control over and give direction to its industrial growth. Zoning has been instituted to designate proper industrial land uses. An industrial park has been created, with all utility and transportation facilities and with special financial devices to make plant construction easy. In spite of these improvements, problems of industrial land use will certainly persist. There will be conflicts between good planning and profitable industrial use. Pressures to permit profitable non-conforming uses will be heavy. High costs of prepared urban sites compared to the low cost of raw agricultural land may help to create conflicts between Erie and some of its suburbs. Commercial Erie now has what appears to be an excess of land zoned or used commercially. In the average city of Erie's size, experience shows that not more than 2% to 5% of the land should be zoned commercially. In Erie at the present time, the percentage is 14%. This must mean that commerce does not constitute the highest and best use for some of the land. It also means that the operators of commercial facilities in poor locations are operating at low profit margins. It may mean that some facilities are placed in residential areas to the detriment of real estate values in those areas. Nothing in existing law or public policy can correct this situation. Commercial uses, once established, have every right to continue in operation. Probably the most effective remedy for 70 Case Study Area No. A1 LAND such unfortunate circumstances will be provided by the free market forces which are certain to make some of the excess commercial facilities so unprofitable that they will be abandoned. How¬ ever, much time and careful planning will be required to effect a concentration of commerce in designated areas and its elimination from areas in which it does not belong. Residential Because Erie is old, many problems have developed with respect to its residential use of land. Raw land within the City limits is rapidly disappearing. Many existing residential uses of land have become outmoded. Good residential areas are not being adequately protected from commercial incursions. In some parts of the City, obsolesence and blight are being allowed to develop. Increasingly, Erie will be concerned, not with new residential construction, but with the rehabilitation and redevelopment of its existing housing supply. Important questions of land use and real estate taxation will be involved. Far-reaching decisions will have to be made. COURSES OF ACTION Both public and private efforts are certain to be involved in bringing about the patterns of land use which will be most helpful to the future of Erie. Economic forces freely operating in the real estate market will continue to exercise the controlling influence in the developments which take place. The free market must provide the funds which will make possible new and costly developments in the industrial, commercial and residential uses of land. That is the easiest way to put land to its highest and best use. Nevertheless, there are ways in which public policy can be brought to bear, particularly through zoning and tax policy, to have a decided effect on the growth and development of the com¬ munity. Since each of these tools involves important questions of public policy with respect to land use, consideration of them will be delayed until an appropriate place is reached later in this Workbook. IMPLEMENTATION There is no way to implement the discussion of land and land use in general. Implementation must wait until specific problems have arisen and courses of action for dealing with them have been suggested. Then, choices can be made and steps can be taken to implement them. The essential thing to recognize at this point is that land is of the utmost importance to the future of Erie and that the uses to which available land is put can be controlling over the kind of city and metropolitan area which develops. 71 CASE STUDY AREA NO. A2 WATER RESOURCE PERSONS Arthur K. Divell Supervisor, Salvage and Reclamation, General Electric Company Kenneth H. Fleming Development Engineer, Hammermill Paper Company John D. Johnson Superintendent, City of Erie Water Bureau C. Edward Palmer President, Palmer Filter Equipment Company BASIC FACTS AND COMMENTS In 1952, the U. S. Geological Survey published a report entitled, WATER RESOURCES IN THE LAKE ERIE SHORE REGION IN PENNSYLVANIA, which discussed in detail the water po¬ tential in the area. The conclusion of the report was that, while water was available in some quantities from sources other than Lake Erie, the amount of such water was not great enough to serve as a basis on which to predicate any large growth and development of the area. This conclusion was accepted without question, and attention was concentrated directly on Lake Erie as the future source of water for the Erie metropolitan area. While the amount of water from the Lake is unlimited, nevertheless, serious problems arise in making the water available for general use. Before focusing attention exclusively on the problems posed by Lake water, recognition was given to the place and importance of the water obtainable from other sources in the Erie area. Building dams in sections of the County now given to flooding has been suggested as a means of creating reservoirs which could become sources of water supply for both irrigation and public consumption. This possibility will be considered in connection with Problem Area No. 4-AGRICULTURE. At the present time, water is being taken from Lake Erie at five principal points in the Erie area. Two of these are primarily for industrial cooling purposes. Two others, owned by the City of Erie, constitute the sources of water for most residential, commercial and industrial uses. The Hammermill Paper Company has its own source of water from the Lake, but the Com¬ pany also draws upon City water for certain of its purposes. Considering present costs for establishing intake pipes, processing and pumping facilities, it was agreed that none of the suburban areas adjacent to Erie could afford the capital expenditures necessary to establish its own independent source of water supply from the Lake. For all prac¬ tical purposes, therefore, the existing facilities of Erie must be made adequate to supply the entire area. The purity of the water from the Lake, while high, is not adequate to be supplied to homes without treatment. Therefore, the water is regularly subjected to alum treatment, processing through rapid sand filters and given an injection of chlorine. The exact nature of the treatment is varied from time to time, depending on the condition of the water at the intakes. The rapid sand filters have a capacity of 60 million gallons per day. The problem of purification may also become complicated by the fact that extensive algae formations are developing in the Lake. These formations, if they continue to grow until they reach the intakes, could begin to affect both the taste and odor of water from the lake, thus requiring additional and costly treatment. The volume of water pumped by the City system varies from a low of about 33 million gallons per day in winter to a high of more than 50 million gallons on hot summer days. This volume is much higher than that consumed by other cities of comparable size. This heavy usage, which can tax the full capacity of the City system, is partly explained by the fact that water in Erie is not 73 Case Study Area No. A2 WATER metered. Once a flat fee for residential services has been paid, no limit is placed on the amount of water which can be used. There is every reason to believe that, if meters were installed, the consumption of water would decrease more than 25% and the load on the City system would be reduced correspondingly. One means of overcoming possible water shortages is the construction of a pressure intake on Presque Isle. This could increase the potential daily volume to 90 million gallons. A by-product of such a pressure intake could be a rebuilding of the present supply line for the Chestnut Street plant to give access by deep draft vessels to the west end of the bay. Each of the two pumping stations in Erie constitutes what might be called a separate water system. However, the two systems are interconnected so that, in case of emergency, each could help meet the needs of the entire City. Because of the increasing elevation of the land as distance from the lake increases, the prob¬ lem of pumping water presents real difficulties. The low areas near the Lake are supplied by a single pumping. Areas located somewhat further from the Lake are served by a high pumping service which requires handling the water twice. For remote areas, booster service must be supplied. Two booster systems are now in existence. Each involves a third pumping of the water and adds greatly to the cost of delivery. In every case, reservoirs are provided to generate pressure in the water mains and to create necessary water reserves for emergencies such as fire. This is directly related to rates of fire insurance charged to residents of the City and suburbs. Future adequacy of the present plant will be determined by policies adopted to control the use of water. If excessive use of water is encouraged, or if the service area of the City system is extended tremendously, almost immediate shortages can be anticipated. If, on the other hand, water is economized and controls over suburban use are established, the present plant, with neces¬ sary improvements and careful maintenance, may be adequate for the next ten or fifteen years. The most effective single tool for protecting the present system from excessive water use, is the use of water meters. Meters would eliminate the present flat rate and install a system of charges based on measured water use. For the average family in Erie, this would probably re¬ sult in annual payments no greater than those presently being made. Users of water in heavy volume would have the option of curtailing that use to make their bill comparable to present pay¬ ments, or of continuing to use large quantities of water and increasing their payments. Because of the physical layout of the metropolitan area, and the financial infeasibility of establishing separate water systems for suburban areas, the City must expect continuing and expanding demands to be made upon its water system by these areas. This involves problems of varying degrees of difficulty. Some of these problems can be suggested as follows: Volume Suburban areas give every indication of constantly increasing demands for water not only for residential purposes but also for commercial and industrial uses. The possibility always exists that these areas will use the availability of water as an argument to lure industry from the City. This could remove a source of both tax income and jobs from the City. Rates Under existing law, there can be no question about the right of the City to charge suburban areas more for water than is charged residents of the City. This may become necessary par¬ ticularly where water has to be pumped long distances and to high elevations. However, the supplying of water to suburban areas is subject to regulation by the Pennsylvania Utilities Com¬ mission and, therefore, the rates have to be reasonable and equitable. Discrimination as between 74 Case Study Area No. A2 WATER suburbs cannot be tolerated. The raising of water rates to discourage industrial plants from moving to the suburbs would not be permitted. Suburban areas which buy water from the City and set up their own distribution systems, particularly at the higher levels, may find costs so high that they must take steps to discourage excessive consumption. One of the best means of achieving that end is the installation of meters. Such controls could have the effect of lessening demand upon the City system and could help pro¬ tect the presently available supply. Main Extensions At the present time, water main extensions in the suburbs have to be financed by the areas benefited. This may involve capital costs which exceed existing local debt limitations. For that reason, the use of the authority device has been called upon. In the City, extensions of mains cannot be considered as exclusively a City matter. If the City alone were involved, a six or eight-inch main might be completely satisfactory. However, because of possible extensions to serve the suburban areas, the design of the mains must be ample to meet the highest potential demand which may be made upon the main. This adds to the cost, not only of the pipes, but also of excavation and installation. Financing the Availability of Water There are various methods which might be followed in meeting the water requirements of Erie and the suburbs. It is only when the financial implications are taken into account that the basic nature of the problem of supply becomes apparent. At the present time, financing of water supply for Erie is on an unsatisfactory basis. The system seems to be losing money. The City is directly involved in the financing of this utility operation. The needs of the entire water supply problem are not being taken into account. COURSES OF ACTION While many courses of action are possible in connection with water supply, the significance of each of them depends on the fundamental decision about whether the City is to operate the water system for purely municipal purposes, or to serve the entire Erie area. There are substantial arguments for a strictly municipal system. Why should the City, which now has a plant adequate for its own requirements, make capital investments for the benefit of the suburbs? Why should the City allow its system to be used up to, and perhaps beyond, its capacity for outlying areas ? Why make water available which the suburbs can use to lure industry from the City? The obvious answers to these questions may tend to justify a City system, but they are def¬ initely in conflict with any realistic understanding of the problems of growth and development for the Erie area. The area view must be that water supply is a single basic problem for which some total solution must be found. If the City refuses to serve the suburbs, it will be preventing area development which ultimately must result in diminishing its own potential. If the City accepts a responsibility to service the entire area with water, it must choose between the alternatives of setting up a public utility operation or creating a special authority to operate the system for the area as a whole. At present, the City seems inclined to follow the utility pattern. It is making the service available. If it will impose disciplines on residential use, and on suburban distribution to pre¬ vent waste of water, the City can probably continue operating on this basis for an indefinite period of time. No doubt, conflicts of interest will arise. None of them, however, would seem to be insuperable. 75 Case Study Area No. A2 WATER If the City were to choose the second alternative of creating a special water authority, a number of steps, including the following, would be involved: 1. Creation of the authority. Legally, under existing Pennsylvania law, this is a compar¬ atively simple matter. Standard legal provisions enable an authority to be established quickly. Securing qualified men to run the authority should not be difficult in Erie. 2. Purchasing the existing water system from the City of Erie, and acquiring existing extensions from the suburban townships. This would involve careful negotiation over a period of time. Estimates of the value of existing plant and equipment would have to be established by competent engineers. Purchase contracts would have to be drawn. Necessary financing would have to be arranged. 3. Financing. The possibilities of financing have been explored in a preliminary way. Financing for capital investment in any amount can be made available, providing a rate structure is developed which will pay both capital and operating costs. In the case of water, this is easily possible because a monopoly is established over a most essential commodity. However, rate increases would almost certainly be involved and severe public protests might result. A real possibility exists that, if an authority were established, the installation of water meters might prove to be a necessity both to prevent excessive use of water and to recover enough income to make the system completely self-supporting. Installation of such meters would involve an initial capital cost which would more than pay for itself through the elimination of the excessive use of water. IMPLEMENTATION If the City chooses to continue its present method of servicing the area with water, one im¬ portant change should be made in its present operations. The needed change involves financing. At present, the financial affairs of the City and the Water Department are so intertwined that a clear picture of costs is not available. A new system of accounting should be installed which would set the Water Department up as an operating utility and make provision for equitable rates and adequate financial reserves. In establishing such an accounting system, a decision would have to be made about possible charges to the City for certain uses of water and exemption for other uses such as fire fighting and possibly the municipal fountain. So far as the suburban use of water is concerned, the City should establish itself as a full- fledged public utility with rate schedules and costs filed with the State Public Utilities Commission. It should be able to attribute definite portions of all capital costs to that service. If the present method of providing water service is to be changed, and particularly if an authority is to be established, no action should be taken until all aspects of the matter have been explained fully to the public and until widespread understanding and support have been created for the move. This might involve the complete Citizen Participation Process which is described in the COMMUNITY DEVELOPMENT SERIES, and which will be discussed in its practical ap¬ plication to Erie in connection with Case Study Area No. G23. 76 CASE STUDY AREA NO. A3 POLLUTION - AIR, WATER AND LAND RESOURCE PERSONS Raymond J. Hengel Architect, Flahart, Dittman & Hengel Melvin O. Nelson Engineer, South Dakota Health Department Dr. N. R. Whitney Physician William Noordermeer City Park Superintendent Joseph Munro Superintendent, Black Hills Power & Light Co. AIR POLLUTION I. DEFINITION Polluted air is air containing (in addition to normal constituents of the earth's atmosphere) contaminants classified in the following groups: (1) Dust, Fumes and Smokes — (2) Mists, Fogs, Vapors and Gases. Polluted air contains foreign substances and is unclean air. Contaminants, for the purpose of this report, will refer only to undesirable or chance impurities, since it is often necessary on oc¬ casion to add to the air controlled amounts of solid or gaseous diluents for the prevention of ex¬ plosions, control of bacteria or masking odors. II. SOURCES OF AIR POLLUTION Contaminants which pollute air in this area may arise from normal processes of wear, erosion, windstorm, evaporation, thermal disintegration, combustion, manufacturing, transportation, agriculture and the bio-chemical or biological processes of life. These contaminants are clas¬ sified at various times as organic and inorganic, visible or invisible, microscopic or macroscopic particulate or gaseous, toxic or harmless, beneficial or destructive. In Rapid City and surrounding area, the most obvious source of air pollution is the cement plant which emits smoke, dust, noxious gases, and water vapor and the adjacent quarries which emit mineral dust. Included in this in¬ dustrial plant category would be: (1) Sawmills which emit smoke, vapor, water vapor and flaming solids; and other industrial plants consuming large quantities of fuel through combustion. (2) Trans¬ portation, including trucks, buses, automobiles, trains and aircraft emit gases and dust. (3) Refuse burning (both industrial and domestic) which emits smoke, water vapor, and noxious gases. (4) Domestic sources of air pollution emit products of combustion from heating plants, the odors from cooking, and the water vapor and solid contaminants emitted by laundry drying equipment. Agri¬ culture may be responsible for contaminating the air with dusts of mineral type and also vegetable types, such as grain, flour, pollen; or animal, such as wool, hair, feathers, and dusts from leather and hides. Dust introduced into the air through movement of surface vehicles on city streets and high¬ ways is caused by: 1. Inadequate drainage of streets and highways 2. Improper or inadequate cleaning of streets and highways 3. Deposits of dirt in the form of mud carried onto paved streets by vehicles moving from unpaved streets to paved streets 4. Improperly surfaced streets, roads and highways 77 Case Study Area No. A3 POLLUTION HI. THE EFFECTS OF AIR POLLUTION ON: A. Economy B. Health Air borne contaminants are carried over wide areas by wind. Contaminants of a solid nature may remain in the air only a short time and be deposited as the air loses the velocity necessary to carry these solid particles. Mists which are very small air borne droplets of materials, ordinarily liquid at normal temperatures and pressures, may be carried by the air over great distances and would usually remain in the air longer than solid particles. Fogs, which are distinguished from mists by defining them as air borne droplets formed by conden¬ sation from the vapor state, may also remain in the air considerably longer than solid materials. Both mists and fogs may remain in the air even when there are very small movements of air. Vapors and gases may disperse from their source in any direction. However, since their rate is approximately 300 feet per minute, they are seldom a source of air pollution upwind from their source. All of these contaminants affect the economy of an area and usually have an adverse effect on this economy. Solid matters settle out of the air and fall on all exposed surfaces. Some of the solid materials are harmless, and have very little effect in themselves. However, removal of them may damage smooth surfaces. The abrasion caused by repeated fallouts and removals may eventually damage the surfaces of buildings, materials and automobiles. The cost of removal is evident from the cost of washing automobiles, windows, buildings, sidewalks, and streets. Fogs and mists may condense on surfaces of plants, buildings, and vehicles and freeze, causing extensive damage when accumulating on communication and power lines and on signs and windows. Fogs which may condense on solid particles and be deposited on building surfaces and vehicle surfaces may cause damage from chemical reaction when the solid matter will react in an adverse manner with the surface on which it is eventually deposited. Gases and vapors coming in contact with the surfaces of buildings, vehicles, and plants and animals may also cause damage if there is any adverse chemical reaction between the gas and vapor or the liquid which results from it and the surface on which it may be deposited. Cost of removing all of the contaminants which are deposited on buildings, plants, or animals ranges from the cost of keeping such buildings clean to artificial washing of plants when rainfall is inadequate to keep them clean. Under extreme conditions, direct economic loss may be caused by accidents due to heavy concentrations of fog, smokes, and vapors, causing accidents in the transportation industry. Most gases and vapors may also have an adverse effect on the economy when noxious odors are present in any or all of these. This may range from lower property values adjacent to, par¬ ticularly downwind, from plants and processes generating objectionable odors. Presence of such odors and noxious gases may completely eliminate residential and recreational developments from occurring in areas where odors are present. This could possibly result in increased travel costs between residential and recreational areas and industrial areas. Air contaminants also have an adverse effect on health. This may range from the nuisance value of odors and solid materials to the very realistic irritations, aggravation of allergic disorders. Prolonged exposure to heavy concentrations of solid particles taken into the lungs by breathing may cause temporary or permanent damage to the respiratory system. Irritation of the eyes and irritation of skin, sensitive to certain elements of the contaminants, atmospheric pollen grains discharged by weeds, grasses and trees are responsible for hay fever and result in discomfort and possible loss of efficiency to the point where the victim is unable to work at all. Intermittent exposure to polluted air may not result in permanent damage to health, but repeated or prolonged exposure may result in intake of sufficient contaminants into the system to cause serious and permanent damage to health. The technical and medical effects on health are beyond the scope of this report, and are mentioned only in generalities. Inorganic compounds such as hydrogen sulfide, sulfur dioxide and carbon monoxide are definitely poisonous in high concentration. This is particularly true of carbon monoxide, which 78 Case Study Area No. A3 POLLUTION can be fatal if in a high concentration in a closed area. Ordinarily, none of these compounds will cause trouble in the open air. Dust irritants are primarily a nuisance in the air, but when reaching high concentration, as in mines, can cause chronic lung changes which may be incompatible with normal pulmonary func¬ tion. Silicosis, a chronic disease due to inhalation of rock fragments, may occur in people who are exposed to high air concentration of such fragments over a period of many years. This, too, ordinarily does not occur as a consequence of dust in the open air. Air borne contaminants which settle on the surface of water used for human consumption add to the effect of treating and filtering such water to make it potable. Air borne contaminants are responsible for the majority of contamination of swimming pools and require constant cleaning of the pool itself, as well as filtering the water to make it fit for human occupation. The cleaning of enclosed reservoirs is required due to deposit of air borne contaminants drawn in through the vents when the level of the water within the reservoir is lowered. The frequency and extent of such cleaning is directly related to the degree of air pollution by solid contaminants. IV. AIR POLLUTION CONTROL Abatement of atmospheric pollution becomes necessary when concentration of contaminants reaches a degree where it is endangering health, creating a nuisance or becoming an unbearable factor in the economy of a region. Surveys of air borne solids settling in urban areas are usually reported as a soot fall in tons per square mile per month. Published data for cities in this country indicate that such fallout ranges from 20 to 200 tons per square mile per month. Rapid City and area would probably be in the lowest range - or approximately 20 tons per square mile per month, although it is evident that this figure would vary considerably across the town. Actual field studies are indicated to determine actual level. The Staven Engineering Company report to the cement plant commission gives amount of air contamination fallout from the cement plant. Successful abatement of atmospheric pollution requires the combined efforts of combustion engineers, in¬ dustrial executives, public health officials, city planning commissions, and the community at large. Electrification of industry, railroads, (commercial and domestic) appliances has proved an effective aid in the solution of this problem, as has the increased use of domestic oil and gas furnaces and segregation of industrial districts. However, visual observation of the main sources of pollution in Rapid City indicates that at certain times and under certain weather conditions considerable improvement is needed and existing conditions are particularly obvious on bright sunshiny winter mornings, when it is possible to see from any high vantage point the concentration of smoke-filled air in the valleys and lower residential areas of the community. During foggy weather, or when clouds provide a low ceiling over the community and adjacent areas, contam¬ inants from industrial plants in the area remain at low levels, thereby becoming a nuisance and increasing the fallout to objectionable levels. Under the same conditions, dust stirred up by trans¬ portation is unable to escape and adds to the concentration of contaminants in the occupied level. At the same time, the accumulation of gaseous contaminants may cause irritation of eyes, nose, and respiratory passages, and possibly even more serious physiological effects when these gases are prevented from rising into the higher atmosphere and escaping from the occupied level. Ac¬ cording to the adverse effects on health from high concentrations of contaminants in the air, it is a fact that these contaminants absorb solar ultra-violet light, and, over prolonged periods of over¬ cast or high concentration of contaminants, solar radiation could decrease as much as 50 percent over that obtained during periods of extremely low contamination or clear air. It is possible to limit the discharge of smoke of a specified density by ordinance or legis¬ lation. In some communities, present ordinances limit the number of minutes in any hour that smoke of a specified density, may be discharged. However, there is an extreme amount of dif¬ ficulty in establishing acceptable criteria for certain corrosive and irritant gases, and the com¬ plicated technical and economic problems encountered in control of these have delayed drafting and enforcement of legislative measures. The variable factor of weather also presents an obstacle 79 Case Study Area No. A3 POLLUTION in drafting adequate legislation for control of smoke. Any such legislation drafted for Rapid City should consider the particular advantages caused by the climatic conditions in this area. While regular rainfall cannot be relied on to assist in cleaning contaminants from the air, the winds which prevail in the air can be counted on varying in velocity to the extent that they will alternately cause some contamination by carrying dust into the air, they can also be relied on at lower ve¬ locities to move this contamination out of the area of Rapid City. Control of dust stirred up by surface transportation can be solved only by cooperation of all the inhabitants of the area and the governmental bodies involved. Each individual can assist in reducing the amount of dust stirred up by moving traffic, by keeping his walks and driveways clean of accumulations of mud, slush, and snow. Governmental agencies having control of streets and roads and highways can reduce the amount of dust stirred into the air by moving traffic, by proper design of such traffic ways and providing proper dust free surfaces for them. In addition to this, not only periodic cleaning, but cleaning as necessary to keep accumulations of dirt and dust at a minimum are the respon¬ sibilities of Government. Streets and roads carrying insufficient quantities of traffic to warrant hard surfacing may be treated with less expensive methods involving materials which would absorb moisture from the air to prevent surface from becoming dusty. Control of dust from rock quarries by careful scheduling of crushing and dust causing operations or stockpiling of produce is possible. Crushing operations should be carried on to their greatest extent when weather conditions would either prevent dispersal of the dust or cause movement in the direction of the least adverse effect on health and economy of the largest number of people. Under adverse weather conditions, it may be necessary to pro¬ vide legislation prohibiting the discharge of extensive quantities of mineral dust into the air for certain hours. Dust and wind erosion from agricultural operations can be reduced and kept at a minimum by following closely the recommendations of conservationists for each particular type of operation. However, it should be understood that curtailment or regulation of both industrial and agricultural dust producing operations must not interfere to the point of forming hardship for the operators. A problem accompanying smoke abatement is the control of odor nuisance in the neighborhood of industrial plants discharging noxious or offensive air contaminants. In Rapid City, these odor producing operations include the cement plant, the municipal sewage disposal plant, and the various livestock operations in the community and hot mix operation. Control of outdoor odor nuisance is extremely difficult because of the minute quantities of contaminants that are capable of offending a wide area. In odor causing operations where the odor is discharged through a controlled or semi-controlled device, it is possible to install air cleaning equipment or alter the process to terminate the offensive operation in residential or commercial districts. This would be possible in the case of the cement plant, where the odors are discharged through the smokestack, but would be difficult at the sewage disposal plant and the livestock operations. However, considerable progress is being made in masking or absorbing agents which are introduced at the same place as the odor causing contaminants originate. Possibility that these will eventually be applied to sewage disposal operations is encouraged and will probably have its place in future installations of this type. Air exhausted from buildings from which cooking or processing operations are conducted is also a source of air pollution, but it is easier to control than outdoor operations. Passing the air through cleanable filters, scrubbing towers, or air washers, completely controls, or at least reduces the quantity of odors discharged from buildings. However, there are cases where air pollution thus become a source of water pollution. Control of contaminants from refuse burning is usually easier to control by legislation than many other sources of air pollution. When refuse burning is carried out exclusively by the mu¬ nicipality, the time of burning can be controlled and often coordinated to take advantage of pre¬ vailing wind and other atmospheric conditions which would reduce the nuisance value and reduce the contamination of air over residential and commercial areas. Where possible, this problem 80 Case Study Area No. A3 POLLUTION is completely eliminated by using the sanitary fill method of refuse disposal. Refuse burning by individuals should be controlled and/or prevented by enforced legislation. Control of contaminants from domestic cooking and housekeeping operations is not a serious problem in this area, although the increasing number of outdoor cooking and barbecuing units may make it a temporary problem in some areas where residential units are crowded close to each other. The period during which such operations occur is of short duration and of temporary concern. Weather conditions which make such operations a problem usually discourage the very operation itself. Pollen has become a major health problem in recent years. This is primarily due to the pollen of certain grasses in the spring and the various species of ragweed in late summer. The disease known as pollenosis or hay fever causes widespread suffering, and in a few cases, crippling asthmatic attacks may occur. Control of pollen contaminants may again be provided by legislation and strict enforcement of such legislation. Use of agricultural spray by industry, agriculture, governmental bodies, and private individuals can reduce the growth of these plants in any particular area. However, because of the high dispersion rate of pollen grains, it is difficult, if not impossible, to completely eliminate them from air over any particular area. Where air borne bacteria originate in a process or oper¬ ation, it is possible to provide control that prevents bacteria from being circulated and dispersed into the atmosphere. Since not all sources of air borne bacteria are man-made or under the control of man, methods of eliminating bacteria from air within buildings are fairly easily accomplished. It is now well established that ultra-violet radiation is feasible and effective in the protection or preservation of food products and the reduction of bacteria in air circulated through heating and cooling devices. However, ultra-violet light must be carefully applied. Protection to human health must be considered by proper application and shielding of ultra-violet rays. An additional threat to health are radioactive air contaminants which are becoming of more prominence daily. They differ from ordinary contaminants in that they may be highly toxic when ingested and may present a direct radiation hazard when accumulated in appreciable quantities. Radioactive contaminants are usually detected with proper devices and may be eliminated from air introduced into buildings by filtration. Such contaminants, when deposited on vegetation and plant life and animal life, may eventually become a source of contamination and a possible health hazard when consumed by human beings. Control of radioactive air contaminants is becoming a special field in itself. It is only briefly mentioned in his report. Since the sources of radioactive contamination in this area are not available, it is believed that their importance is of little sig¬ nificance at this time. ( To prevent air pollution from becoming a more serious problem in this community than it already is, consideration should be given to the following: 1. Plans for elimination, where possible, of sources of pollution; a. Better and more complete surfacing of streets b. Control of individual refuse burning. 2. Control boards or agencies should have joint membership of industrial, civic, and governmental representatives. 3. A public information program should be instituted to obtain the cooperation of the gen¬ eral public in reducing air pollution. 4. Where existing standards regulating air pollution are non-existent, or inadequate, new standards should be established in the interests of protection of public health and investment. 5. Any control or legislation should be kept at a minimum and individuals responsible for pollution should be encouraged to handle the problem before it becomes necessary to resort to legislation and legal action to reduce or eliminate the problem. 81 Case Study Area No. A3 POLLUTION 6. Where legislation is required, it should be devised and modified to assure economical, effective, and continuing means for elimination, eradication, control treatment of con¬ taminants and sources of air pollution. 7. Where pollution is an inter-state matter, either because of origin or destination of con¬ taminants , a control program should be instituted and placed in the hands of agencies which can operate beyond state boundaries. 8. Endeavor to create an interest in pride of "community house keeping" among citizenry. WATER POLLUTION Pollution of water is the damaging effects of sewage, industrial wastes, and silt on the water resources of an area. Sewage or water-carried wastes is essentially the used water of a com¬ munity. Sewage is treated to protect public health, avoid nuisances, and to protect the recreational, aesthetic, and economic values of natural bodies of water and outdoor bathing places. Civilization or the building of homes, commercial establishments, factories, roads, etc. tends to pollute our environment. Adequate planning and control measures must be initiated and continued to maintain a healthy surrounding or place to live. Wastes contain disease producing bacteria and viruses, organic materials, chemicals, silt and other foreign matter that have many harmful and distasteful effects on stream or ground water supplies. Polluted water: 1. Gives off an offensive stench. 2. Is extremely unattractive in appearance. 3. Contaminates and kills seafood and fish. 4. Prevents normal bathing and swimming. 5. Even when processed with chlorine and other chemicals — changes the taste, appearance and the odor of our drinking water. Inadequate water treatment may result in water¬ borne disease in humans. Human physical illness such as typhoid fever, dysentery, and hepatitis may be transmitted by polluted water. Contamination of surface water with human wastes is primarily of nuisance value under normal conditions; however, many acute and chronic diseases; specifically, typhoid fever, bacterial dysentery, cholera and Amoebic dysentery may be spread by the drinking of contam¬ inated water. Some of these conditions may be fatal. Industrial wastes may also contain chemicals which could be irritating or fatal. The effect of home detergents in drinking water is too new to be determined. The effect of erosion with soil particles in the water is not much of a nuis¬ ance since this will settle out of the water on standing. Most communities and industries in South Dakota have been very cooperative in providing adequate water pollution control projects. The South Dakota water pollution control law is modern and requires a permit before the discharge of any new wastes. The law was originally passed in the early 1930's. The permit feature is to prevent new sources of pollution. The South Dakota Committee on Water Pollution consists of the State Health Officer (chairman), Chairman of the State Water Resources Commission, and Director of the Department of Game, Fish & Parks. The Director of Division of Sanitary Engineering, State Department of Health, serves as executive secretary and supervises necessary field activities by the engineering division. The committeee has not had to issue pollution abatement orders to date which indicates routine State Health 82 Case Study Area No. A3 POLLUTION Department field visits have been effective in South Dakota. The attached bulletin is an inventory of existing sewage works or public waste facilities in South Dakota. The Federal Water Pollution Control Act has provided financial assistance for recent proj¬ ects at Edgemont, Belle Fourche, Newell, Buffalo, Whitewood, Sanator, New Underwood, and Custer State Park. Reduced cost of waste treated by utilization of stabilization ponds has also accelerated construction of sewage collection systems in small towns. The most critical pollution problem in the Black Hills area is located on Whitewood Creek below Lead and Deadwood. Industrial wastes and raw, untreated human wastes (12,000 persons approximately) are discharged, creating gross pollutional conditions in Whitewood Creek and Belle Fourche River. Untreated toilet and other wastes in streams located in tourist or rec¬ reational areas is a serious problem. Detailed studies and reports completed in 1959 have been submitted to county, city, and industrial officials. These officials are studying ways to finance engineering and construction work necessary in this area. The large volume of gold production wastes and the number of cities and unincorporated communities in a small area contributing to Whitewood Creek pollution complicates the pollution control program. A Cooperative area-wide organization of a sanitary district appears the most feasible solution. The South Dakota sanitary district law has not been applied or used in the state to permit waste collection and treatment on a drainage or area basis. A sanitary district organization is indicated wherever one large treat¬ ment facility will be more economical than several small plants. One area in the state must form a district to determine if the South Dakota law is complete or suitable to meet the needs along lakeshores, unincorporated communities, and metropolitan areas. The Lawrence County officials plan to request an Attorney General's opinion on legal aspects of an area-wide project. The U & I Sugar Company at Belle Fourche installed screens, large waste ponds, and proper regulation of waste discharge in 1957 to eliminate pollution problems in the Belle Fourche River. This industry also completes stream and lake sampling for laboratory tests each winter to be sure of adequate water protection. The waste handling practices also conserves nearly 400 million gallons of water each year for irrigation and other beneficial uses. The Uranium Mill at Edgemont cooperated in working out satisfactory waste control meas¬ ures. All silt or fine waste ore has been retained on mill property. Radium or radioactive waste water was discharged to the Cheyenne River and Angostura Reservoir for only a few months after the mill started operation. The amount of waste discharge never exceeded the standard estab¬ lished for human drinking water. The mill officials submitted daily discharge records to prove adequate public health protection. After careful analysis of all technical factors involved, the mill process was changed and additional ponds constructed to eliminate all waste discharge to the Cheyenne River. The Uranium Mill now provides 100% waste treatment and reuse of process water. Spearfish, Custer, and Hill City waste treatment plants are modern mechanical plants with a high degree of waste treatment. Some problems exist during dry weather because of very little or no dilution of the treated waste in the small streams. Fish kill has been reported below Spear¬ fish because irrigation demands caused zero stream flow at the municipal plant. A certain mini¬ mum stream flow is needed for water pollution control purposes and this is one major problem in the Hills area. Additional development of our water resources, tree thinning to improve water runoff to streams and lakes, and development of new and improved waste treatment methods, all need attention. Municipal officials at Rapid City, Sturgis, Wall and Philip are proceeding with engineering plans for expansion of overloaded treatment facilities. Communities and rural congested areas without modern facilities or central water and waste systems present a serious potential public health hazard. Outdoor toilets, cesspools and septic tank 83 Case Study Area No. A3 POLLUTION systems extremely close to shallow private wells are increasing rapidly. Human drinking water available in Keystone, Box Elder area near Ellsworth Air Force Base gates, Rapid Valley above and below Rapid City, and in many other rural development areas is definitely of questionable bacterial and chemical quality. A water-borne disease outbreak has been investigated at Keystone, South Dakota. The possibility of another outbreak near the National Monument, that is visited by over one million persons each year, will remain until satisfactory sanitary systems are installed. Rapid Creek is receiving pollution from several sources including private home septic tanks, fish hatchery, road construction, some mining operations, and the overloaded Rapid City municipal waste treatment plant. Swimming in Canyon Lake cannot be considered safe because of excessive bacterial content of the water. Eliminating the sources of pollution from the homes constructed along Rapid Creek is important along with the problem of materially reducing the bactereological content due to the fish hatchery and large number of ducks on Canyon Lake. Pollution of the lake also comes from picnickers who throw debris into the water or leave it on the ground where it is later blown into the water by the wind. Rapid City's water treatment plant will maintain safe drinking water for Rapid City citizens. The major problem at this time is the pollution of shallow private well water supplies. Septic tank systems are located close to private wells in congested areas with lots too small. Shallow private wells are being contaminated by bacteria, nitrates, chlorides, and detergents. Detergent suds in well water samples have been noted. Nitrates from pollution can cause cyanosis or "blue baby" condition in infants. Formation of water supply dis¬ tricts and sanitary districts are required if the congested areas are not ready for incorporation as a city or town. The pollution of ground water is similar to that of surface water, in that detergents and human waste in septic tanks and from outdoor toilets may drain into drinking water. The prob¬ lem of pesticides, specifically the insecticides like DDT and the weed killers such as 2 4 D is too new, but there is a good possibility that these will have some effect on humans. The septic tank is the Number 1 source of ground water pollution in this area. No organized coordinated program exists to insure proper installation. Usually the private sewage system fails to function because: 1. Inadequate design or construction. 2. Soil conditions not suitable. 3. Lot too small. 4. High water table. 5. Lack of adequate maintenance—sludge and scum removal every 3 to 4 years. With an estimated construction of 300,000 septic tank systems each year in this country, it is not realistic or good public health practice to ignore this problem. Basically, county and city government and local health departments are not prepared to cope with "urban sprawl" or metropolitanism. Properly trained local health workers are needed to co¬ operate with planning groups and agencies. There are no pat answers to the urban problems, but good planning with all interested specialists participating should eliminate some of today's prob¬ lems and prevent tomorrow's environmental health problems. The Water Pollution Control Federation adopted a comprehensive statement in 1960. The 13 point statement on water pollution control is attached. The following items need particular action in South Dakota and the Black Hills area: 84 Case Study Area No. A3 POLLUTION 1. Provide more development of water resources. 2. Mandatory certification or licensing of better trained and compensated operating per¬ sonnel. Operation of and early expansion of existing treatment plants is the "key" to prevent pollution. Importance of routine efficiency tests and good operation and main¬ tenance is not always realized by responsible persons. 3. Promotion of sanitary districts to provide public sewage collection and treatment for rural congested areas. Area-wide projects are needed, realizing disease and sound engineering and financial solutions may not stop at city limits. 4. Adequate zoning regulations. 5. Permits or approval of private septic tank system construction. 6. Research to determine effects of new exotic chemicals and viruses on human health. Strict control in proper use of poisons (pesticides, weed killers, fish poisons, etc.) entering public water supplies. We wonder what the combined effects or mixture of the many new chemicals reaching streams has upon public health. Some compounds alone may not be objectionable but may unite with other chemicals causing harmful effects. 7. Expanded research to develop improvements to waste treatment methods. 8. Public must be made fully aware of pollution hazards to support construction and proper operation. 9. Control sedimentation or silt pollution where it is practical to do so. Disposal of ref¬ use and other solid material creates a pollution problem and is rapidly defacing the "Beautiful America" we once knew. South Dakota counties do not have the clear au¬ thority to establish good refuse collection and disposal systems. Our rural unincor¬ porated areas do not have dumps and any anti-litter campaign is never effective without suitable disposal sites. The need for many sanitary landfill and other satisfactory methods of refuse disposal is critical. Again, county health department personnel are required to establish good systems and to make sure the general public takes advantage of worthwhile services. 10. Strict enforcement of water pollution control laws by federal, state and local govern¬ ments. Properly trained personnel in all sections of the state are necessary to deter¬ mine the type and extent of water and waste water treatment needed for any specific situation after consideration of the technical factors involved. Cooperative approach between the control agency, cities, and industry usually results in satisfactory control measures. Lack of personnel complicates development of a cooperative solution. Use of orders to abate pollution, when absolutely necessary, requires considerable labora¬ tory data and facts to prove pollution to the court's satisfaction. Cooperative solutions are always better to encourage good new industries and keep our young people in the state. Rapid City is fortunate to have outstanding operation of the sewage treatment plant for many years. Similar operation is needed for all waste handling facilities and should receive top priority. Good operation means laboratory control of the processes and keeping the management and public informed of difficulties or overloading conditions, etc. The urban sprawl and home development in the country or scenic rural area is proceeding without direction or proper regulation by city or county government. Sanitation problems in 85 Case Study Area No. A3 POLLUTION recreational areas and youth camps do not receive adequate attention because of lack of local health services. Certain new enabling legislation and cooperative, coordinated programs with all interested departments of government participating should help solve local pollution problems. The goal should be zoning and construction of public water mains and public sewer systems before, or as the communities are built up. Considerable study and planning is urgently needed to delineate where septic tanks and private wells can be safely permitted. Early expansion of the Rapid City municipal sewage treatment plant is required to prevent by-pas sing of raw untreated wastes to Rapid Creek. The municipal officials are to be commended for retaining a consulting engineering firm for detailed studies. The Rapid City waste treatment plant expansion completed about 10 years ago was not sufficient to handle the extreme growth of population. Complete studies regarding methods of expansion and plant location are important. An overloaded treatment plant with inadequate sludge handling facilities does create odor or nuisance conditions. Pollution problems in Rapid Creek above Canyon Lake should be of particular interest to Rapid City citizens. Waste from private homes and the Fish Hatchery should be treated in the Rapid City sewage treatment plant. It appears the Rapid City officials should provide the incentive for extension of the municipal sanitary sewers or permit an agreement with properly organized sanitary districts. Increasing pollution of Rapid Creek above Rapid City will add to taste and odor problems at the Rapid City water treatment plant intake. LAND POLLUTION The greatest problem of all for the park department is land pollution. People seeking rec¬ reation and relaxation pollute park areas by throwing empty containers and bottles out on park areas creating a desirable place for flies and bacteria to thrive. Others take their pets for a walk, leaving undesirable animal refuse along the way for children to romp and play around later. It is possible that more stringent law enforcement could alleviate this problem somewhat, however, more diligent public education would be a more desirable method to accomplish the same result. Proper control and maintenance of the land fill process at the City Dump is essential to the elimination of blowing papers and debris from this source. 86 CASE STUDY AREA NO. A4 CLIMATE RESOURCE PERSONS Capt. J. W. Blackwell Texas Highway Patrol Bill Brown Pioneer Natural Gas Company Byron Reese Expressway Engineer, Texas Highway Department Don Schomburg District Sales Manager, Braniff International Paul Timmons Associate Editor, The Globe-News Publishing Company H. C. Winburn Meterologist in Charge of United States Weather Bureau SCOPE OF STUDY This report deals with the climatological aspects affecting those living in this area and of interest to those considering this area as a location for industry or as a place to live. This report deals also with the incalculable economic loss suffered by Amarillo as a result of the widespread misconception of Amarillo's climate. BACKGROUND Amarillo has a pleasant climate, ideally suited to many industries. Those who have lived in Amarillo know of its pleasant climate. Elsewhere, the common belief is that the weather in Amarillo is always violent, with blistering heat, scorching winds, blinding sandstorms, howling blue northers and raging snowstorms, all likely to be mixed together at any time of the year. This image is self-perpetuating. The result has turned industry away from Amarillo, has caused people to reject Amarillo as a possible homesite and causes travel agencies and others to advise travelers against routes which lead through Amarillo. The weather bureau and news reporting media have contributed to this problem and continue to do so. BASIC FACTS AND COMMENTS Climatological summary: Amarillo is located on the high plains of Texas at an altitude of 3,657 feet. The normal precipitation is 21.22 inches. Rainfall has varied from 39.75 inches to 9.94 inches. Thunderstorms between April and September bring three-fourths of the annual rain¬ fall. Mean annual snowfall is 18.7 inches, but snow rarely remains on the ground longer than two or three days. The area is subject to sudden changes in temperature, particularly during the winter months. January is the coldest month, with a mean temperature of 35.3 degrees. Temper¬ atures below zero are recorded on an average of only two days per year. July has the highest normal maximum, 91.8 degrees, but the July mean temperature is only 77.8 degrees. The normal minimum for July is 63.8 degrees, indicating comfortable and restful nights. The temperature rises above 90 degrees on an average of 71 days per year. Hundred degree temperatures are experienced occasionally, but not for continuing periods. Low humidity moderates the effect of high temperatures and makes evaporative cooling systems effective. Highest humidities occur during early morning hours, averaging about 70 per cent. Humidity drops during the day to an afternoon average of about 40 per cent. Amarillo receives about 70 per cent of the possible sunshine. March and April are the windiest months, but the entire year has a mean wind speed of 13.5 miles per hour. Historical weather: Occasional duststorms cause little hardship in Amarillo. The black dusters of the Dust Bowl days did not originate in this area but swept over Amarillo. They re¬ sulted from the combination of drought with efforts to farm submarginal land, partly in Texas, but largely in Oklahoma, Kansas and Colorado. Improved tillage methods have reduced this problem. 87 Case Study Area No. A4 CLIMATE Damaging ice storms have occurred only twice in 20 years —first in 1940 and again in 1959. Record high temperature was 108 degrees in June, 1953, and the record low temperature was -16 degrees in February, 1899. Effect on outdoor operations: Reports of the construction industry show little loss of time due to weather, which is perhaps the best indicator of the true weather picture in Amarillo. Of¬ ficers of the carpenters union set the loss at seven to 10 days per year. Bricklayers union officers say three to seven days per year, and painters and electricians estimate their loss at three days per year. Records of the Texas Highway Department show a higher loss, but officials point out that the contractor generally is allowed to charge a day lost whenever weather interferes with the major work in progress, even though other work may continue. Over much of the nation, highway construction is suspended four or five months of the year. Here, road work continues the year around. Highway Department construction records for the Panhandle show an average of 55 days per year not worked due to weather. Effect on plant locations: The generally mild weather is favorable to industrial location. Industry employing cooling towers and basins is advised that 50 years of weather bureau records show the wet bulb temperature has never reached 70 degrees on more than six days in a year, and generally for short periods on these days. Efficient evaporative cooling is important also to the operation of evaporative type air conditioners. Highest temperatures normally occur during the period of lowest humidity. Dry weather makes corrosion a factor of little importance. Plant drainage is a minor problem. Heating costs: Comparison with domestic and commercial heating costs in other population centers shows the cost of heating in Amarillo to be low. Weather forecasting and reporting: The United States Weather Bureau and the news re¬ porting media contribute to the bad weather image of Amarillo. There are many factors involved. So long as state lines are given importance, Amarillo will probably continue to be reported as the coldest spot in the state, or the report will show that the coldest spot was near Amarillo. As the only city in a wide area having a strong daily newspaper, Amarillo is the severe weather reporting center for an area reaching into five states. A result is that many storm stories on Associated Press and United Press International news wires are datelined Amarillo, even though the severe weather may actually have been in Oklahoma, New Mexico, southern Kansas or southeastern Colorado. The district weather bureau for Amarillo is at Fort Worth and both forecasts and reports are more accurate than was true previously when the district forecasts originated in New Orleans. However, it continues to be true that storm forecasts made by the district office and counter¬ manded locally by the Amarillo bureau are nevertheless released to the news services. The re¬ sult is that newspapers in other areas often carry big headlines about storms forecast for Amarillo, not reporting later that the storm did not materialize. Effect on transportation: Amarillo has annually 360.25 days of flying weather, according to official U. S. Air Force records at Amarillo Air Force Base. This figures out at 98.7 per cent flying weather, leaving only 1.3 per cent as time when it is impossible to land or take off here. The City of Amarillo has no specialized snow-removal equipment, the need for snow removal being considered too infrequent to justify the investment. The Texas Highway Department maintains a large stock of snow removal equipment, primarily because drifting is generally present with heavy snowfall in the Plains area. COURSES OF ACTION Concerted and continued action will be necessary to destroy the bad weather image. The job should start at home, selling the people of Amarillo on the two facts that climate is pleasant 88 » Case Study Area No. A4 CLIMATE and that the bad weather reputation costs. This must be combined with an effort to spread the truth. Changes in both forecasting and reporting by the U. S. Weather Bureau are needed. Em¬ phasis in weather news reporting to the-news wire services needs to be shifted to the pleasant weather in Amarillo during periods when other areas are having bad weather. Business firms could well use envelope stuffers calling attention to facts about good weather in Amarillo. One such might report, "The sun is shining in Amarillo, seven days out of ten." Another might report, "It's flying weather in Amarillo, 360.25 days per year." Another type could be adjusted to the month, a January stuffer pointing out, "An average January day in Amarillo — High temperature, 47 degrees, low 21.6 degrees, sun shining, wind southwest at 12.8 miles per hour, humidity at noon, 52 per cent." In July, a stuffer might say, "Nights are cool in Amarillo. Average over¬ night low temperature is 63.8 degrees." Motel and highway association people should have factual information about Amarillo weather distributed in courts and tourist stops from coast to coast — Amarillo's weather reputation hurts Highway 66 motel operators everywhere, and they should help us with our problem. Airlines should advise stewardesses that Amarillo's weather reputation discourages travelers from coming this way, which is bad for airline busi¬ ness. They might inform passengers that the sun is shining here, or some such, instead of scaring them. IMPLEMENTATION Newspaper reports of this subcommittee report will be a first step toward educating our own people in regard to the true facts and the damage being done by Amarillo's bad weather reputation. Each further step in the implementation can also be a subject for newspaper re¬ porting. Envelope stuffers should be designed by advertising agencies or similarly experienced and skilled organizations and should be printed by the Chamber of Commerce for distribution to business firms. Motel operators and others affected by highway travel should act through their own associations to spread information about Amarillo's good weather. The Chamber of Com¬ merce should have immediate contact with airlines about instructing their people to paint a good picture of Amarillo weather. * 89 CASE STUDY AREA NO. A5 AGRICULTURE RESOURCE PERSONS John W. Bergstrom Program Consultant, Erie County Agricultural Extension Office Harold W. Buchholz Joseph W. Jonas Watson A. Lupher Alfred J. Miles Director, National Grape Cooperative, Inc., North East, Pennsylvania Farm Products, Lake City, Pennsylvania Soil Conservationist, United States Department of Agriculture Corry, Pennsylvania Guy S. Morton Past Master, Pomona Grange, North East, Pennsylvania BASIC FACTS AND COMMENTS In Erie County, there are 3,318 farms which produce a total of $18,170,000 in income. Eight million, nine-hundred thousand dollars of this income is derived from crops; while $9,270,000 is produced by livestock. In 1954, the total income was about $15 million. This means that farm income in Erie County has been increasing at the rate of about one-half million dollars per year. Milk is the largest single factor in farm income. Other important items are grapes, forest products, potatoes and beef cattle. To a considerable extent, the farm products produced in Erie County are processed in the area. This adds considerable value to the economy, although dollar amounts are difficult to cal¬ culate. All of the grapes grown in the area are processed here. Much of the fruit and the milk are also processed in Erie. It is estimated that even more processing could be done in the Erie area, particularly in the freezing of fruits and vegetables. Increasing the processing of agricul¬ tural products would add value to the crops and further expand the local economy. As an additional indication of what agriculture can contribute to the local economy, the fol¬ lowing statistics about Pennsylvania are significant. Agriculture is one of the largest and most important segments of the Pennsylvania economy. This business activity involves a combination of workers employed on farms, processing plants, wholesale organizations and retail stores and eating establishments. This industry has an annual payroll that runs past the $2 billion mark each year and sells a product worth more than $5 billion annually. To accomplish this, more than $9 billion have been invested in the state for land, buildings and machinery and equipment. This total agri-business team employs 37% of the State's total working population. The soil and farm people provide the foundation for this great business. Within the Keystone State, more than 220 thousand farmers are located on 124 thousand farms selling annually a prod¬ uct worth $800 million. In order to obtain this level of production, these farmers have invested more than $3 billion in farm product resources. The total agriculture business of Pennsylvania makes up 1/5 to 1/4 of the entire economy of the State. Within Erie County, the agricultural land uses are becoming more intense. Concord grape acreage has remained fairly constant while production is increasing due to better practices in culture and to the relocation of vineyards from marginal and fringe growing areas to better soils and climatic locations closer to Lake Erie. Land which formerly had no economic use is now being brought into production for crops with low soil requirements such as Christmas trees. 91 Case Study Area No. A5 AGRICULTURE This more intense use of agricultural land in the County is resulting in some very significant adjustments by farmers. Some of these adjustments include: 1. Farm population continues to fall. Persons per farm in Erie have dropped from 5.3 in 1950 to 3.3 at the present time. It is estimated that as high as 80 to 90% of the children raised on farms will be seeking non-farm jobs. This poses a very serious problem for the future. 2. Proper use of farm land is becoming important. Soil conservation is becoming essential. Perhaps the biggest single problem in this field has to do with drainage. There are sev¬ eral areas in Erie County affected by flooding. While this is regarded as a menace at present, it may become an important asset for the future. As the use of land becomes more intense, irrigation may become important. Irrigation would require that water resources of the County be developed for this purpose. Pumping water from the Lake to high ground is so expensive that irrigation with this source of water is economically unfeasible. Storage reservoirs built strategically throughout the County to accumulate flood waters, so that they can be used for many purposes, may become an economic neces¬ sity. Anticipation of this need and the acquisition of the few remaining sites which are both available and feasible should be accomplished before land in these areas has become too valuable for such use. 3. Water pollution will soon be a problem throughout the farming area of the County. By 1962, the danger of pollution in wells will have become so serious that all wells will have to be tested and approved before their waters can be used on milk equipment. 4. Zoning of farm land may become a necessary protection to agriculture. Much of the County farm land is now being inadequately used. Zoning can help control such uses, and also prevent incursions into farm areas of urban land uses which are unnecessary or ill-advised. Zoning might also be used to set aside flood areas for future reservoir use. 5. Seasonal labor. Certain farm operations, such as the growing of fruit, are highly seasonal. At times, temporary labor is essential. The local labor market does not supply such labor in the amounts needed. Importation of migrant workers is being made more difficult and expensive by standards being applied to the shelter and em¬ ployment conditions for such labor. This could become one of the limiting factors on the potential benefit of agriculture to the County. 6. Small agricultural producers are in difficulty. Increasingly, the marketing of farm prod¬ ucts is being done through large corporations which buy for chain stores and other mass outlets. Buyers representing these distribution organizations want to deal with producers who can provide produce in large enough quantity to supply a major part of their require¬ ments. These buyers, because of their need for volume, are not in position to deal with the managers of the family farms. 7. Better public relations. Farmers are increasingly aware that their problems are not understood by the urban community. They recognize that such understanding must be cultivated if both groups are to work together for the common benefit of all. COURSES OF ACTION The basic problem of adjustment is one for the farmer to work out for himself. There can be no substitute for individual initiative, careful planning and good management. However, there are certain aspects of agriculture on which other kinds of action seem to be appropriate. 92 Case Study Area No. A5 AGRICULTURE One course of action involves cooperation among farmers as a group. This is a protection to the small producer in the marketing of his products. It can help in the handling of seasonal labor and in the development of new and better uses for farm land. Another course of action involves the public. The public interest would be involved in the acquisition and designation of storage areas for surplus water, and zoning of farm land for its better protection. Public action would be required to initiate any such protective arrangements. IMPLEMENTATION Those aspects of agriculture which seem to require public action are of a character which involve, before anything else, careful and comprehensive planning. The questions raised here, therefore, should be presented for consideration by the County Planning Commission. Once that body is prepared to make a recommendation, urban and farm groups working together might join in support of such a recommendation to see that corrective action is taken. The nature of joint action cannot be suggested, however, until the recommendations of those concerned with compre¬ hensive planning have been carefully developed. 93 CASE STUDY AREA NO. A6 RESOURCE PERSONS Max W. Beilis Paul Cygan C. Edward Palmer Gerald S. Salsbury Robert B. Steytler Frank Szklenski Joseph A. Walczak SEWERS AND DRAINAGE Manager, Mining and Industrial Locomotive Engineering, General Electric Company, Commissioner, Lawrence Park Township Superintendent, City Sewer Treatment Plant President, Palmer Filter Equipment Corporation Secretary, Millcreek Sewer Authority City Engineer Supervisor, Harborcreek Township Director, City Department of Streets and Public Improvements BASIC FACTS AND COMMENTS The political boundaries of Erie correspond in a remarkable way with the geographical area which has to be drained through the City. The topography of the land is such that most of the area both to the south and to the east of the City drains into one of the creeks that by-passes the City as it flows to Lake Erie. At no point beyond the City limits is there a distance of more than 1,000 feet which has to drain its storm waters through the City. This greatly simplifies the problem of providing storm sewers. Originally, when Erie began to install sewers, it used a type of construction designed to carry storm water and sanitary sewage in the same pipes. This has complicated the problem of sewage treatment because storms may create a volume of water too great to be treated. This means that under flood conditions, some raw sewage from the City is dumped directly into the Lake. At present, new installations are designed for either sanitary sewers or storm sewers — not both. These provide for adequate treatment of the sewage at all times. In an effort to correct and to minimize the difficulty caused by the existing combination sewers, diversionary lines have been established which begin to operate when storm waters exceed three times their normal volume. It is estimated that, by the use of these diversion lines, raw sewage is diluted at least 100 times under the worst conditions before it flows into the Lake. The standard method of treatment for sewage in Erie involves a modified aeration process which removes about 85% of the bacteria and solids from the water. In summer, the effluent is treated with chlorine to create complete sterility before discharge into the Lake. The flow through the treatment plant averages about 35 million gallons per day. At this maximum, the removal of solids and bacteria may be only about 70%, which continues to meet the State Department of Health recommendations. This excess capacity enables the City to process sewage from nearby suburban areas under contracts negotiated by the City and the townships affected. The City treatment plant was built by an Authority which leases the' facilities back to the City for operation. The City collects a sewage tax at a rate high enough to retire all the indebted¬ ness of the Authority. The operation of the plant is financed by appropriations from the City's General Fund. Since the City is almost completely equipped with sanitary sewers, and about 80% serviced with storm sewers, there are no particularly severe problems in this field of community facilities. Sewers scheduled for construction have been planned. Even if natural storm drainage from ad¬ jacent areas is added to the system, the planned pipe sizes will continue to be adequate. While sizeable capital expenditures will continue to be required until the complete City system has been installed, financing will not be difficult to provide. 95 Case Study Area No. A6 SEWERS AND DRAINAGE COURSES OF ACTION Only two alternatives exist for dealing with the sewerage problem of metropolitan Erie. One possible procedure is to continue the present method of dealing with the problem. Under that system, each political subdivision works out its own problems in its own way. Necessary interrelationships between the City and the suburbs are worked out by contract. This is probably the least costly way of providing sewer service. Another possibility for handling the area sewerage requirements is to convert the existing Sewer Authority, which has served largely as a financing mechanism for the City, into an operating agency for the entire area. The financing of such an Authority would be done through sewer rental charges. Rentals could be adjusted to produce enough revenue to make the system self-supporting. A sewer rental system would permit financing of the entire project by revenue bonds of the Au¬ thority. However, this arrangement would involve the purchase of the existing systems from the City and the suburbs and might involve extensive capital costs. IMPLEMENTATION The first course of action outlined involves no change in the present method of handling sewerage facilities. The speed with which the construction of additional City sewers progresses will depend almost entirely on the arrangements made between the City Council and the Sewer Authority for the issuance of bonds. No serious problems should arise. The second course of action would involve extensive changes. Laws would have to be changed. The establishment of an Authority would have to be agreed upon by various political subdivisions, and steps would have to be taken to set up an Authority and get qualified individuals to run it. Financing would have to be established to assure repayment of borrowed funds. A comprehensive planning program would have to be instituted. There might be a possibility of combining such an Authority with a similar authority estab¬ lished to handle water supply. This would produce a single agency to operate two of the most essential services to any community. It would enable payment of higher salaries to secure the operating personnel with the highest qualifications. Problems involved in such a course of action are sufficiently complex that no hasty action should be taken. The possibilities and problems should be discussed by public officials and citizens of both the City and the suburbs which might become involved. Advantages and disad¬ vantages should be weighed carefully against one another. No action should be taken unless, and until, some clear indication emerges that all concerned want the Authority procedure. 96 CASE STUDY AREA NO. A7 PORT AND WATER TRANSPORTATION RESOURCE PERSONS James H. Coppedge, Chairman Gordon Thompson Jack W. Lucas Guy S. Alvarez John G. McGiffin Frank H. Brownett Frank Taylor, Jr. W. J. Rivers, Jr. Norman Helfrich Harvard Nygren Gordon Thompson Chevrolet, Inc. Lucas and Herndon Springfield Atlantic Bank McGiffin and Company, Inc. Contractor Reynolds, Smith and Hills Prudential Insurance Company of America Jacksonville Traffic Bureau Jacksonville Area Chamber of Commerce INTRODUCTION In 1884 the Jacksonville Board of Trade was formed with the primary mission of securing a constant eight feet of water over the St. Johns River bar. During the succeeding years Jackson¬ ville has become a great city and progressed in direct proportion to the improvements made to the St. Johns River and the Port. Now, seventy-eight years later, Jacksonville citizens are working through the same organization - now known as the Jacksonville Area Chamber of Com¬ merce - to further deepen the St. Johns river channel. Through the diligent efforts of dedicated people the Jacksonville Harbor now has a depth of 34 feet. One enters the Port of Jacksonville from the Atlantic Ocean between two converging stone jetties that extend out across the ocean bar and are paralleled from the coast line for over four thousand feet at the seaward ends. The entrance channel to the U. S. Navy's Carrier Basin at Mayport, near the mouth of the St. Johns River, has been deepened to forty-two feet in order that the world's largest aircraft carriers may be berthed at this activity. The St. Johns River is one of the few rivers that flow North. The Atlantic Intra-Coastal Waterway, that connects Trenton, New Jersey, with Miami, Florida, crosses the St. Johns River about five miles above its mouth. The St. Johns River is navigable to Lake Harney, a distance of one hundred sixty-nine miles below Jacksonville, with depths of water varying between twenty to six feet. In fiscal year 1959, the U. S. Army Corps of Engineers were granted the initial appropriation to determine the feasibility of deepening the St. Johns River channel to forty-two feet. Additional appropriations have been granted by the Congress each year, and it is anticipated that the final report will be made by 1963. The port of Jacksonville now has 11,331 feet of berthing space provided by nine terminals. Rail, barge and truck interconnections are available. Our total port tonnage has increased 79% over the past ten years. This compares favorably with the Pensacola increase of 77% and the Tampa increase of 97%. However, it does not even get close to Port Everglades with 150%, or Mobile with 141%. RECOMMENDATIONS If Jacksonville is to continue to progress as a great seaport we must continue to improve the port facilities both channel wise and terminal wise. 97 Case Study Area No. A7 PORT AND WATER TRANSPORTATION The most important needs of the Jacksonville Port are: 1. A Port Authority. 2. The Cross Florida Barge Canal. 3. A 42' deep harbor channel. The first step in this program is to create a strong central control for the administration of the Jacksonville Area Port. We believe Jacksonville is desperately in need of a county-wide Port Authority with the following characteristics: 1. A dedication to the principle of maximum free enterprise in the Port's operation. 2. The Port Authority Board should be a combination of private citizens and representatives from the City and County governments. 3. A strong, well paid professional staff headed by an experienced Port Director. 4. Financially strong and capable of issuing revenue certificates. 5. Personnel practices and procedures determined by the Authority. A Port Authority with the above powers should undertake the following programs: 1. Secure the Municipal Docks and Terminals and expedite the modernization and expansion of the terminals and piers. 2. Secure Blount Island and begin its development as an industrial center to relieve the present shortage of deep water industrial sites. A bulk cargo handling facility should be included in the island's development. 3. Assume the responsibility of local sponsor for the deepening of the Jacksonville harbor to 42 feet to Trout River. This sponsorship would include providing for the deposit of spoil from deepening and maintenance dredging as well as maintaining a continuing liaison with the Corps of Engineers. Also imperative for the future development of Jacksonville and Florida: . . . the Cross Florida Barge Canal, together with the Sanford-Titusville Canal, are vital not only for industrial and recreational development but, also, to properly service the all important Missile Center at Cape Canaveral. . . . the rehabilitation of various private docks and warehouses. ... a strong and active Trade Mart. ... a downtown passenger terminal for cruise ships. These appear to be projects that can best be promoted by organizations like the Jacksonville Area Chamber of Commerce, the Florida Waterways Association, The Propeller Club and other private interests. However, it is recognized that a Port Authority could be of great assistance in expediting these projects, and it is even conceivable that certain of them would become Port Au¬ thority projects. 98 Case Study Area No. A7 PORT AND WATER TRANSPORTATION CONCLUSION We feel that it is impossible to really measure the importance of the port to Jacksonville. We estimate that over half of Jacksonville's income is derived from port and port affiliated busi¬ ness. Can anyone imagine a Jacksonville without the St. Johns River? Our greatest asset lies dormant here before us. We have no other realistic course than to direct a major portion of our efforts to the full development of our harbor resources. The future of Jacksonville lies with its port. Let's move ahead! 99 CASE STUDY AREA NO. A8 FISHERIES RESOURCE PERSONS Ira A. Carr Fishery Methods and Equipment Specialist, United States Fish and Wildlife Service C. E. Cope Fishery Marketing Specialist, Branch of Market Development, United States Bureau of Commercial Fisheries Merle H. Jackway Tivis Seafoods Company Alfred Larsen Fishery Biologist, Pennsylvania Fish Commission William Munch Munch Fisheries Fred C. Ralph, Sr. Fred C. Ralph Fisheries BASIC FACTS AND COMMENTS In recent years, a considerable transformation has taken place in Lake Erie fishing. Choice species — including Cisco, Blue Pike and Whitefish — have become less plentiful. Lesser species, and particularly Smelt, have increased greatly in number. These relationships fluctuate from year to year, but on balance they have made fishing for the choice species less profitable and have opened the possibility of profitable operations from fishing for other species such as Smelt. The decline in the fishing industry can be seen in a comparison of the number of nets licensed as required by law. This has dropped from a total of 303 in 1915 to 81 in 1959. Blue Pike production has dropped from a high of 3,680,999 pounds taken in 1931 to 4,636 pounds taken in 1959. The 1959 take of Yellow Perch, however, was the highest on record — a total of 823,886 pounds — and might have gone even higher except that the market became glutted and fishing was halted. While the sports catch of Walleyes has been on the decline, the 1959 com¬ mercial catch of this species in Lake Erie was also at an all-time high of 93,145 pounds. Lake Erie Whitefish production has dropped from a high of 1,728,345 pounds in 1949 to 18,885 in 1959. Cisco (herring) has also dropped from 2,936,336 pounds in 1946 to 5,697 in 1959. Generally, the methods of fishing for the more desirable species listed above are different from those which can be used effectively for the less desirable species such as Smelt. While the same vessels can be used for both types of fishing, different equipment has to be used. Presently equipped boats can add the necessary equipment to permit multiple gear fishing for a minimum of $3,500 per boat. In addition, because Smelt is such a perishable fish, more heavy icing of the boats or refrigeration will be required where that kind of fishing is to be followed. Several Canadian firms have been doing an excellent business in Smelt. Olmstead of Canada has employed as high as 500 persons at the peak of the Smelt season. This kind of fishing in the open Lake is not confined exclusively to a short season in the spring, but can take place as long as the Lake is open. COURSES OF ACTION In order to take advantage of this new fishing possibility, if evidence develops that it will be profitable, Erie fisheries will have to re-equip their boats. Laws will also have to be changed. The State of Pennsylvania should be requested to amend Section 95 of the fish laws to eliminate 16-mile limits from Erie Harbor imposed on trawls and trap nets. The federal government has no regulatory powers over the fisheries of the Great Lakes. 101 Case Study Area No. A8 FISHERIES New processing facilities will have to be added. This will involve both the addition of more freezing facilities at the Port of Erie and also the installation of new processing equipment. These fish will probably be marketed in frozen packages. There is also a tremendous potential market for use as mink, dog and cat food, also as fish meal. Pennsylvania fishermen will have to find some way to be competitive with the established Canadian industry. Canada now has lower labor costs. To some extent, this is offset by more expensive transportation to profitable markets. Competition will also involve displacing Canada from some markets in which its products are already well-established. This means intensive marketing and promotional efforts. IMPLEMENTATION Much is now being done to improve the fishing situation in Erie and the Great Lakes. The Bureau of Commercial Fisheries of the United States Government is using all available funds to help establish successful trawling operatings on the Great Lakes — including Lake Erie. This program includes the publication of a pamphlet on methods and costs of conversion to trawling. On August 23, 1960, under the joint sponsorship of the Greater Erie Chamber of Commerce, the Pennsylvania Fish Commission and the United States Bureau of Commercial Fisheries, the Pilot City Fisheries Conference was held in Erie for the purpose of exploring practical steps for the implementation of this fisheries program. At that Conference, it became abundantly clear that no single factor in the industry can bring about the organization or coordination of all the resources which must be mobilized if the program is to be successful. New fishing facilities must be provided. New machinery for scaling and processing the fish must be installed. New packing facilities are necessary. New marketing procedures must be developed. Obviously, each group which must make an investment in the new enterprise will be ready to participate as soon as the profitableness of his part in the program can be assured. At the beginning of the Conference, no one interest group was prepared to take the lead and make the initial investment. After the Conference, three fishermen indicated a definite intention to make the necessary conversion of their boats. A cooperative organization is now being formed to process Smelt, to provide additional freezing and storage which may be necessary, to package the product and to market it. Another Pilot City Fisheries Conference will be held in the near future to insure that needed coordination has been provided and that everything possible is being done to bring about the suc¬ cess of this new development in the fishing industry in Erie. 102 CASE STUDY AREA NO. A9 GAS RESOURCE PERSON Merle F. Sample Superintendent of Distribution, Pennsylvania Gas Company BASIC FACTS AND COMMENTS Gas is being supplied to more than 60,000 customers in Erie County through a transmission and distribution network of more than 1,000 miles of pipe. More than $17,000,000 has been invested in plant and equipment to establish and maintain this service. A staff of approximately 250 persons is employed. Two other gas distributing companies exist in the County. The North East Heat and Light Company distributes gas supplied by the Pennsylvania Gas Company in North East. The Borough of Edinboro is supplied by the United Natural Gas Company. Most of the gas used in the Erie Area is delivered from the Gulf Coast and the Southwest, where 80% of the proven reserves of the United States are located. The adequacy of these re¬ serves is evidenced by the fact that, while use of natural gas has been increasing steadily since 1946, new reserves greater than the amounts of gas being used have been discovered each year. Present proven reserves in the United States today are 64% higher than they were at the end of 1946. In addition to this national supply, a limited amount of gas is produced in Erie by the Inter¬ lake Iron Corporation from its by-product coke ovens. The full gas output of this plant is used by the Pennsylvania Gas Company. Supplies of gas for Erie are brought into the area through several different transmission lines to avoid any possible interruption of service. One of the principal suppliers is the Tennessee Gas Transmission Company. Gas is taken into the Pennsylvania Gas Company System from the Tennessee Company's lines at two different points. Available facilities for the storage of gas in the Erie area are excellent. There, surplus gas is accumulated in summer for use to meet the heavy winter demands. This storage facility helps to avoid high rates for peak use of gas, and gives the Erie area a rate which is highly com¬ petitive with other industrial areas. While demands for gas in Erie County have been expanding rapidly, the Pennsylvania Gas Company has had no difficulty in fulfilling all requirements. The Company is in position to meet all future requirements. COURSES OF ACTION Apparently, everything which needs to be done to insure adequate gas for all the needs of the area has been and is being done. No additional courses of action seem to be required. IMPLEMENTATION None required. 103 CASE STUDY AREA NO. A10 ELECTRICITY RESOURCE PERSON M. M. Devorris Vice President, Pennsylvania Electric Company BASIC FACTS AND COMMENTS Electric power for industrial, commercial and residential use is readily available to the entire Erie area. The distribution of power is made primarily through the Pennsylvania Electric Company, although there are exceptions in Waterford, Girard and in the small rural area. So far as the adequacy of the supply of electricity for the growth and development of the Erie area is concerned, the basic factor is the capacity of the generating system of the Pennsylvania Electric Company. The power used in the Erie area comes primarily from two sources: the Front Street Gen¬ erating Plant in Erie, and the transmission system of the Pennsylvania Electric Company, which in this area consists of 230 and 115 kilovolt circuits. These are part of a two-state network which can draw on one-tenth of the total electric generating capacity of the United States. The incoming transmission service can take care of the entire electric requirements of the Erie area without any assistance from the Front Street Generating Plant. At present, there are about 71,000 customers in the Erie area and a total of more than 92,000 in all of Erie County. Existing electric facilities in most cases now provide duplicate sources of power into most major service areas. This system is further backed up by super¬ visory control of circuit breakers from a dispatching center at French Road, which makes pos¬ sible rapid restoration of service from this central location through these automatic facilities. Four hundred and ten employees of the Pennsylvania Electric System are headquartered in the Greater Erie area to service this portion of the System. The present peak demand is for about 120,000 kilowatts of power. Studies of the possible growth of this load with the expansion of the area, and in accordance with the assumptions set forth in this Workbook, suggest the need for additional 115 kilovolt line facilities, forming an arc about the southern extremities of the Erie area between Lake City and North East. Some intermediate sub-stations may be required along this extension. Segments of this expansion are scheduled for completion in 1960, 1961, 1962 and 1963. Most of the necessary rights of way have already been acquired. In anticipation of further possible expansion, the Pennsylvania Electric Company has acquired and is holding 500 acres of land near Lake City for development of additional power facilities, if needed. COURSES OF ACTION The adequacy of this source of supply, and the availability of financial and physical facilities with which to provide any necessary expansion, suggests that no problems of electric power exist or will exist in the area in the foreseeable future. IMPLEMENTATION None required. 105 CASE STUDY AREA NO. All COMMUNICATIONS RESOURCE PERSONS Daniel E. Alford Editor and Publisher, The Amarillo Citizen D. D. Dillard District Manager, Southwestern Bell Telephone Company Mabel Du Priest Southwestern Bell Telephone Company Louise Evans Editor, Editorial Page, The Globe-News Publishing Company Raymond Ford Editor and Publisher, The Amarillo American Bob Ghormley Manager, KBUY Radio M. D. Godbey Manager, Western Union Telegraph Company John Heetland Manager, KIXZ Radio Raymond Hollingsworth Manager, KRAY Radio Charles Keys Manager, KVII Television Bill Lane Manager, KGNC Radio John Tyler Manager, KFDA Television Bob Watson Manager, KGNC Television Ray Winkler Manager, KZIP Radio Bob Zellermayer Manager, KFDA Radio SCOPE OF STUDY Communication is the most important facet of our modern way of life. Adequate and free communication is essential to a free people. This study is concerned with the essential phases of communication as it affects our community life. BASIC FACTS AND COMMENTS The City of Amarillo is district headquarters for the Southwestern Bell Telephone Company, an associated company of the American Telephone and Telegraph Company. The Amarillo district, which includes the City of Amarillo, serves 110,769 telephones in 12 cities located in the Texas Panhandle area. In the City of Amarillo, there were 71,901 telephones in service as of February, 1962. All telephones are dial-operated and inter-connected with the nation's long distance networks through underground co-axial and micro-wave installations. The company plans to provide Direct Distance Dialing for its Amarillo customers by the end of 1962. Expansion of telephone facilities in Amarillo includes a new wire center switching office to handle future growth, and a new three-story district headquarters building. The following statistics on telephone growth in the City of Amarillo in¬ dicate the rapid expansion of the city since 1950: 107 Case Study Area No. All COMMUNICATIONS 1950 34,699 1951 37,745 1952 41,965 1953 44,405 1954 47,014 1955 49,358 1956 51,642 1957 54,519 1958 57,979 1959 63,106 1960 67,354 1961 68,305 1962 71,901 The number of employees in the City of Amarillo totals 614. COURSES OF ACTION None required. IMPLEMENTATION None required. TELEGRAPH SERVICE Basic Facts and Comments The Western Union Telegraph Company, as a part of its system-wide modernization and expansion program, recently installed in their office at Amarillo the most modern telegraph equipment. Desk-Fax (facsimile) machines have been installed in the offices of 100 local customers. These machines both send and receive messages between the customer's office and Western Union, in picture form, at the press of a button. A number of other customers are served by tele-printer, a printing telegraph machine. The Western Union telegraph office is open 24 hours daily, providing message, money order and other services, including leased wire systems. Housed in its modern, newly remodeled office at Fifth and Tyler Streets in downtown Amarillo, the office is inter-connected with other telegraph offices in the nation and abroad through the company's high-speed automatic switching system. COURSES OF ACTION None required. IMPLEMENTATION None required. NEWSPAPERS Scope of Study Three news publishing companies serve the City of Amarillo as well as areas extending into Oklahoma, Kansas and New Mexico. The Globe-News Publishing Company BASIC FACTS AND COMMENTS The Globe-News Publishing Company prints three newspapers — the Amarillo Daily News, six mornings a week; the Amarillo Globe-Times, five afternoon a week; and the Sunday News-Globe. 108 Case Study Area No. All COMMUNICATIONS Combined daily circulation is more than 80,000. The newspaper covers 38 counties in Texas, Oklahoma and New Mexico, representing a population of 530,600. With 89.4 per cent coverage of metropolitan Amarillo, population 148,505, and approximately 50 per cent coverage of the entire Amarillo land market, population 530,600, Amarillo's strong newspapers are unchallenged in their dominance of this wealthy, independent, isolated market which they, and they alone, deliver. The newspaper has six leased wires, United Press International, Associated Press, wire- photo and picture service; more than 30 regional corresnondents; and staffers in Austin and Washington. Every working day millions of words flow into Amarillo over the telegraph, tele¬ printer and leased wires. The newspaper has 330 employees and some 1,000 newsboys. (600 in Amarillo; 400 in other areas.) The Amarillo Citizen BASIC FACTS AND COMMENTS The Amarillo American is owned and operated by Raymond Ford, publisher. The American is an independent suburban newspaper published in and for the north and east portions of Amarillo. While it is distributed at no charge to homes in its circulation area, it also has a paid circulation totaling 8,000. COURSES OF ACTION None required. IMPLEMENTATION None required. RADIO AND TELEVISION Scope of Study Six radio stations and three television stations serve the City of Amarillo and cover much the same territory as does the newspaper. The most powerful, KGNC radio, has listeners in 80 counties in Colorado, New Mexico, Kansas, Oklahoma, and Texas. BASIC FACTS AND COMMENTS Amarillo is the nation's newest billion dollar market. National advertisers who ignore Amarillo and the Panhandle of Texas area are passing up a fertile field of sales, and missing a tremendous opportunity to put their products in front of the "buyingest" people in the country. The 1958 Census of Business showed that Amarillo and the Panhandle led Texas and the nation in percentage increase in retail sales during the period of 1954 to 1958. The Panhandle's in¬ crease was 23 per cent —above Texas' 19 per cent and the nation's 17 per cent. An audience composition breakdown, based on the Pulse Report during 1960, shows Amarillo radio stations reaching a total of 166,400 homes. All major networks are carried by Amarillo radio and television stations. Television covers a total of some 600,000 people. Community antenna systems carry one television signal as far as 180 miles from Amarillo. The combination of outstanding coverage, major network programming, and fine locally-originated shows makes Amarillo television stations the most dominating in the Southwest. Good management and alert personnel are just two examples of this dominance. The radio and television stations have contributed greatly in making Amarillo: 1. The fastest growing market in Texas. 109 Case Study Area No. All COMMUNICATIONS 2. A leader in retail sales. 2. A wholesale and transportation center. 4. Marketplace for Panhandle agriculture. 5. Headquarters for oil, gas, helium, and industry. 6. An important military and atomic energy center. COURSES OF ACTION None required. IMPLEMENTATION None required. 110 CASE STUDY AREA NO. A12 AIR TRANSPORTATION RESOURCE PERSONS Howard Hilman Virgil Sorenson Glen Burdine A1 McDonald Station Manager, North Central Station Manager, Western Manager, Rapid City Municipal Airport Rowell-McDonald Travel Agency BASIC FACTS AND COMMENTS This report is intended to define and set forth the three phases of activity related to Air Transportation Service in Rapid City. First, and most important phase, commercial passenger service; second, the facility for such service; third, the handling of air freight and the facilities available for such service. In the area of commercial passenger service, there has been and does still exist a definite trend for more use of air travel as the report will affirm in later paragraphs. The growth of passenger travel is one indication that even though there does not exist a major problem at this time, there will, in the future, be a need for additional flights from Rapid City to the important gateway cities to the East and West. Minneapolis and Denver are, at this time, the most frequently used gateway cities for travel to more distant points. Since the inauguration of direct non-stop flights between Rapid City and Denver, there has been a shift of interests away from Minneapolis. Many passengers use Denver flights even for such eastern cities as New York, Washington, and Chicago, although this is gen¬ erally the exception rather than the rule. Rapid City's geographical position has presented a minor problem in the establishment of improved departures and arrivals. In order for a person to travel to the Northwest, it is required that he must first travel many miles to the Southwest — first to Denver or Salt Lake City and then to Seattle or Portland. If a person wants to travel to Chicago, he must first travel Northeast to Minneapolis and then South to Chicago. The point here is that it is extremely difficult to arrange schedules for direct service thus effecting a lower fare because of the reduced number of miles traveled. With the reduction of passenger train service to and from Western South Dakota, it has become obvious that air transportation in and out of Rapid City will continue to grow and for this reason a long range look at facilities and routings and frequency of flights should be examined. It could well be that in the next ten years air transportation and surface highway transportation will rank among the top five sources of revenue to Rapid City's economy. PASSENGER SERVICE - Origin and Growth - 1938-1961 Air service for the carrying of passengers on a scheduled air carrier was brought to Rapid City by Inland Airlines on April 15, 1938. Inland initiated this service with four trips daily using ten passenger 247D Boeing aircraft. Two trips operated southbound to Cheyenne, and two eastbound to Huron —the two terminals of Inland Airlines, Route 35. Initiation of this service to progressive Rapid City was hailed as a step forward, and some 2 to 4 passengers a day were originated. By 1941, this figure had raised to a 5 to 7 count per day. 1 In 1944, Inland brought new service to Rapid City in the form of the much faster Lockheed Lodestars which carried 14 passengers. During 1945, Inland purchased the prime aircraft of the 1 These are estimated figures by personnel based here at the time. Ill Case Study Area No. A12 AIR TRANSPORTATION day —the reliable DC-3 and gave Rapid Citians this service over the same routes. Inland orig¬ inated 3,259 passengers at Rapid City during 1945, or nearly IQ a day. In 1946, Inland Airlines was purchased by Western Airlines. Equipment and routes re¬ mained about the same until 1953 when Western placed Convair 240 aircraft over a newly won route from Minneapolis as an Eastern terminal, through Rapid City, west to Casper, Salt Lake City, and Los Angeles. During 1954, Western originated 13,461 passengers at Rapid City. The next significant change to passenger travel by air took place when in February of 1959, North Central Airlines extended its westbound routes to Rapid City — linking this city with Aberdeen, Watertown and on to Minneapolis. Then some thirty days later, Frontier Airlines took over Western's Rapid City to Denver I’oute, thus giving the city three carrier services. Introduction of the new service caused Rapid Citians to take new interest in the air service. Two travel agencies appeared in downtown Rapid City, and an estimated total passengers enplaned and deplaned rose to a total of 42,000 during 1959. Western introduced DC-6B aircraft to Rapid City in September of 1960, thus giving Rapid City its first four engine 66 passenger air service. Actual passenger enplanings and deplanings are not available over some of the years, but personnel based here during the years give the following estimates of early dates. Other estimated figures are based on actual boardings and about an equal number of deplanings. Passenger growth then appears as follows: 1938 1,500 1941 4,000 1945 6,500 1954 27,000 1959 42,000 1961 50,000—plus AIR TRANSPORTATION - FACILITIES HALLEY AIRPORT - Opened in 1928 with Walter F. Halley, President. This operation was known as the Black Hills College of Aviation, operating as a flight school, charter service, and airline service under the name of Rapid Air Lines, Inc., by Clyde W. Ice. Fifteen passenger Tri-Ford, tri-motor airplanes were used, and they operated between Rapid City, Huron, and Watertown. The field operated in the daylight hours and had hangar storage and repair shop facilities. This field operated as a privately owned airport until it was closed in 1959. RAPID CITY MUNICIPAL AIRPORT - Opened sometime in 1938. This airport was opened sometime in 1938 as a public airport with Inland Airlines the only tenant. Aircraft storage was provided the public, but there was no shop, gas sales, or airline repair service. This airport was closed to the public in 1942, due to World War II and the Air Force taking over the land. However, the airline service was maintained until 1952 when the new Rapid City Municipal Airport was dedicated. The new airport consisted of a public terminal building, containing one airline, the CAA flight service station, the USD flight safety office, the U.S. weather bureau, and the coffee shop. 112 Case Study Area No. A12 AIR TRANSPORTATION The field was open to the public and had at their disposal ten aircraft hangars, gasoline sales and service, one airline repair shop, and 5200 feet of hard surface runway, two sod runways, a wind indicator, and some aircraft navigation facilities. The airport was open twenty-four hours a day and provided free landing fees and free tie downs to the flying public. This airport has since grown to two repair shops, ninety-seven aircraft hangars, and truck gas service with all grades of gas furnished. All facilities have expanded accordingly with the growth of air travel. Three airlines serve all parts of the United States and aircraft navigation facilities such as DME, DOR, VORTAS, OMNI, and emergency approach control handled by the Air Force at Ellsworth Air Force Base. AIR CARGO The term air cargo service as used by the air transport industry today is generally con¬ sidered air freight. Before the general adoption of air freight by most of the domestic carriers, the first scheduled carriers limited their cargo to air-mail and air express in addition to per¬ sonal baggage. Air freight service was added later when larger aircraft became available to the industry with capabilities of transporting larger passenger and cargo loads. The development of air-mail service, even before scheduled passenger service, might well have been a deciding factor in the establishment of scheduled domestic air routes today. Inland Airlines inaugurated the first scheduled passenger and air-mail service into Rapid City on April 15, 1938. This not only established scheduled air transportation to Rapid City, but also made the city an important transportation hub for the distribution of air cargo to the surrounding communities. Due to the size and type of aircraft used at this time, it is quite certain that the cargo was limited to small amounts of air-mail, passengers and baggage and finally adding air-express if gross load factors permitted. Figures for the actual amount of cargo carried at this time are not available. The development of air-mail service has been closely related to the changes in postal rates. The rates during 1918 were about 24 cents per ounce and have varied from as low as 2 cents in 1919 to our present rate of 8 cents for an ordinary letter. Air express has developed along the same lines as passenger service and air-mail service. The first express shipments were probably of an emergency character where speed was more important than cost or to expedite perishables and goods of a very high value. Today it is not uncommon to see about any kind of commodity being transported by air. The later trend was due mainly to increased volume and the ability of newer and larger aircraft to carry more cargo at lower rates. Air express is handled jointly by the Air Express division of the Railway Express and the airlines. The airlines provide the air transportation between air terminals while the Express Agency furnishes the pickup and delivery services. The rates are published by the Express Agency and are determined on a formula basis with a minimum charge at the present time of $3.50 per shipment. Air freight service was first introduced to Rapid City by Western Airlines in 1946, and an additional service was established in 1959 by Frontier Airlines and North Central Airlines. Rates for air freight are established by the airlines and filed with the C.A.B. Air freight rates differ from express rates in that they are set up on an airport-to-airport basis, enabling shippers a lower rate on larger shipments. In most cities the pickup and delivery service is provided by the airlines or handled by Air Cargo, Inc., an airline agency for the handling of air freight. 113 Case Study Area No. A12 AIR TRANSPORTATION m During 1954, it is estimated that approximately 4900 pounds of cargo was received each month. This figure has risen to an estimated 23,200 pounds per month in 1961. The above fig¬ ures are based on an estimated 8100 pounds of air-mail, 3500 pounds of air express, 9500 pounds of air freight, and 2100 pounds of preferential mail. Starting in 1938, with a very limited air cargo service, Rapid City today is well served by three airlines, with a total of ten flights per day, supplying Rapid City and the adjoining com¬ munities scheduled air transportation capable of departing each day with combined gross loads up to 569,000 pounds. Rapid City may be proud that, through their never ending desire for progress and their ability to look into the future, a fast, dependable air transport service has been promoted and established, linking their people, local businesses, and the ever important defense industries with every major airport and city in the world. COURSES OF ACTION The most advisable course of action for the present seems to be the continuing effort to secure more direct city to city service in those areas where the demand is evident. The Rapid City Municipal Airport facilities can only be improved with respect to expansion of present facil¬ ities when a need is recognized in advance of the obsolescence of existing facilities. Planning ahead is still the best advice. 114 CASE STUDY AREA NO. A13 RAILROADS RESOURCE PERSONS Halden N. Curtiss Assistant Transportation Superintendent, New York Central Railroad President - Manager, East Erie Commercial Railroad Joseph H. Huntt Leonard F. Thompson Freight Agent, Bessemer and Lake Erie Railroad Company C. Edgar Williams District Sales Manager, Pennsylvania Railroad Company BASIC FACTS AND COMMENTS Erie has an abundance of rail facilities. It is on the main line of two major railroads with sidings and spur connections. They are concerned primarily with through business. Erie traffic constitutes less than 1% of their volume. Two other lines come to Erie specifically to get the business which this community can generate for their lines. Erie is a terminal point for them. One of these roads takes from Erie more than 50% of all the freight business generated in the community. One railroad is entirely local. Together, these rail lines have sidings available or connections from which sidings can be developed for any industrial location or use. Rail freight service, to and from Erie, with all market areas is good. It is free of terminal delays encountered in the larger cities such as Cleveland and Buffalo. Rate differentials are not great enough to account for any extensive shifts in the routing of freight. Passenger transportation by rail has not been profitable in Erie in recent years. This trend is typical of the Nation. There is no prospect of real improvement. Actually, the volume of pas¬ senger business continues to be depleted by private automobiles, air transportation and buses. The prospect is that passenger service by rail will be restricted further rather than be expanded. This will be no great hardship on Erie because the City has no large commuter population which uses rail facilities, but does have improving air and bus facilities which should be able to provide all required passenger service. The railroads can assist in developing the economic potential of Erie. They can supply an important transportation service which can be made available from no other source. They can be particularly useful in Erie where heavy industry generates many loads which cannot be ac¬ commodated on the highways. A survey made of rail and truck traffic in Erie, and reported in TRAFFIC WORLD for April 26, 1958, indicated that the major outbound traffic from Erie was by highway. This was particularly true for distances of 200 miles or less. Only as transportation was for distances of several hundred miles did the percentage of rail use increase impressively. Over 500 miles, the proportion of rail freight was high. COURSES OF ACTION So far as Erie is concerned, it must continue to look to the railroads as an essential factor in community development. They can help to maintain a competitive position for the Erie area by reaching markets with products which can be shipped only or most advantageously by rail. There are many actions which can be taken locally by way of community adjustment to the railroad and vice versa. The matter of eliminating tracks from main thoroughfares, the elimi¬ nation of grade crossings on major streets, and the consolidation of facilities can have a bearing 115 Case Study Area No. A13 RAILROADS on community development. These, however, will be considered in connection with other problems and do not require attention as strictly rail matters. IMPLEMENTATION The prospect is that no effective action can be taken at this time with respect to railroad transportation, as such. Therefore, no implementation is considered. CASE STUDY AREA NO. A14 HIGHWAYS RESOURCE PERSONS Earl M. Evans Chairman, Highways Committee, Greater Erie Chamber of Commerce Harold S. Gahagan District Engineer, Pennsylvania Department of Highways, Franklin, Pennsylvania William J. Pope Superintendent, Pennsylvania Department of Highways, Erie, Pennsylvania Clairence K. Pulling Secretary - General Manager, Erie County Motor Club and AAA Auto Club Harold G. Reslink President, Reslink and Wiggers Motors; President, Greater Erie Chamber of Commerce Robert Steytler Erie City Engineer BASIC FACTS AND COMMENTS Much of the discussion of the advantages of location and natural resources has emphasized that the potentialties for Erie's growth and development are closely related to highways. They provide a means of access to every populated place in the area. Highways connect the Port of Erie with the hinterland. They service the residential, commercial and industrial areas. To the extent that highways are developed and improved, they can increase the potential for develop¬ ment of the entire community. The highway network in the vicinity of Erie is continuously being improved. The biggest improvements, however, seem always to take place on the east-west highways. These improve¬ ments are of benefit, not only to Erie, but also to Buffalo and Cleveland as well. Actually, the elimination of much of the existing east-west traffic from Erie, which will be accomplished by the completion of Route 90, will help to improve Erie's position. Even this improvement is not expected to relieve for long the heavy volume of traffic which is continuously being generated by the position of Erie on the natural trade route along the Great Lakes. The big highway problem, in relation to the growth and development of Erie, is connections with the rest of Pennsylvania. There, volume of traffic does not exist. It must be generated. The extent to which it is generated will in large measure determine the future growth of the Erie area. Of all the highway connections to the rest of Pennsylvania, by far the most important is the proposed new route from Erie to Pittsburgh and to West Virginia. This route can increase the efficiency and economy of transportation to Pittsburgh so much that it will create completely new potentials. The ability of Erie to extend commercial service to what should be part of its natural trading area will be increased. Tourists and visitors will be attracted to Erie in an increasing number. Local business of all kinds will be stimulated. While the highest priority was set on interconnecting roads to the south, recognition was given to an established need in the City and immediate vicinity for extensive improvements in streets and highways. The types of improvement needed in these local highways include: widening, redesign to provide better connections with through highways, rebuilding of as many as 3000 inter¬ sections to higher standards, and rail line and grade crossing elimination. The maintenance of existing streets was also recognized as being inadequate. Both the amount and cost of maintenance is increased in Erie by climatic conditions. The problem will be discussed further in connection with Case Study Area No. G12. . . PUBLIC WORKS. 117 Case Study Area No. A14 HIGHWAYS t COURSES OF ACTION In order to have the highway system contribute a maximum to the growth and development of the Erie area, construction of a modern highway to Pittsburgh and West Virginia is essential. That should have priority above all other highway considerations. Another course of action which seems to be very important is to improve the planning and coordination of activities at every level for all kinds of roads in the area. An over-all planning program is needed — a program in which every agency has a part, and out of which comes a pattern of highways which will be most adequate for service and available at least cost. A third course of action involves the establishment of a long-range planning program for highway maintenance. This program must be set up by each agency for those highways for which it is responsible. The most pressing necessity for this particular program exists in the City of Erie. IMPLEMENTATION Perhaps the biggest obstacle to the construction of the Pittsburgh-Erie Highway is the in¬ ability of residents of Erie to agree on the route through which the highway enters the City. While that decision must be recognized as being of great concern to many persons, it has nothing to do with the transportation potentialities which the highway can generate for Erie. A first step in implementation, therefore, would be to separate these two problems. The Pittsburgh-Erie Highway should be built to improve transportation between the two cities. An effort must be made to create citizen understanding of this point. When built, ninety- five per cent of the highway will use exactly the same route regardless of the decision about access to Erie and to the Port of Erie. This ninety-five per cent portion should be put into con¬ struction. Later, some decision can be reached about the remaining construction. The principal reason for the failure to agree on the route for bringing the highway into Erie is the lack of factual information. Until the facts are available, no final decision can be made. After they are available, the decision may be much simpler and easier to make. Therefore, it would seem wise to wait for the facts. The establishment of a planning program to complete the development of a comprehensive highway plan for the area involves a number of political jurisdictions for both planning and im¬ plementation. Townships, City, County, State and Federal Governments are involved. A program for securing cooperation of all these agencies will be suggested in connection with Problem Area No. 35. The basis for sound planning programs for street maintenance already exists in work which has been done by the State Highway Department. It may be possible to have State help in the for¬ mulation of a procedure to be followed by the City and townships in establishing their maintenance schedules. If so, a completed proposal could be prepared quickly and put before the townships and City for adoption with the assurance that it would increase efficiency and save money. 118 CASE STUDY AREA NO. A15 MOTOR TRUCK TRANSPORTATION RESOURCE PERSONS Thomas J. Hogenmiller Office Manager, Associated Transport, Inc. Fred W. Lubs Frank Mlakar Harold Nash Walter Wigren Sales Manager, Erie-Pittsburgh Motor Express General Manager, Caby Transportation Company Terminal Manager, Lyons Transportation Company Salesman, Erie Trucking Company BASIC FACTS AND COMMENTS Erie is served by more than thirty motor freight lines. Among them, these carriers have the capacity to handle several times the volume of freight which they are transporting at present, or expect to receive in the next ten or fifteen years. These companies have connections which enable them to deliver any load accepted in Erie to any place in the United States. While transfers of merchandise from the Erie carriers to other trucks may be involved, this is a common practice in all forms of transportation. Service in Erie on this type of traffic is comparable to that offered by other communities. Although there is almost no current expansion in the local trucking business, existing facil¬ ities are being improved. The volume of freight from Erie corresponds largely to the business that can be originated in Erie. Naturally, this volume fluctuates from season to season, and is influenced by changes in economic conditions. Thus, the trucking industry becomes a service agency for the community and not a potential source for creating new development in the Erie area. The question of improved thruways and highways was raised on the assumption that better highways would increase the speed of deliveries, enable cuts to be made in freight rates and put Erie in a better competitive position. The answer was that, while improved highways are tre¬ mendously important and while certain operating advantages are undoubtedly realized, there are no economic advantages sufficient to permit any reductions in rates. This is largely because of labor contracts. Labor constitutes at least 50% of the operating costs of freight lines. Present contracts are so drawn that no reduction in wage payments would be realized, even though time in transit might be reduced. I.C.C. and P.U.C. regulation was cited as a control over the industry which might affect its competitive position. Common carriers are subjected to many regulations which increase the ex¬ pense of operation, however desirable they may be from a public policy point of view. As a result, industrial corporations frequently find it economically advantageous to buy and operate their own trucks, which are not subject to the same regulations. This is a competitive force which makes the trucking industry keep its rates at a minimum and attempt to provide a service so efficient that it will be preferred by private industry. While there are facilities for loading which might be used for "piggy-back" operations, there are no such operations going on in Erie at present. COURSES OF ACTION The business of truck transportation is so highly organized, and involves so many factors, that no easy means of effecting change and improvements is available. No course of action can be suggested which will not involve extensive investigation and negotiation. IMPLEMENTATION Since truck service to and from Erie seems to be adequate, both for now and for future business developed in the community, no further consideration of implementation appears to be required at this time. 119 e CASE STUDY AREA NO. A16 INTER-CITY BUS TRANSPORTATION RESOURCE PERSONS William R. Burdick President, Lake Lines, Inc. Vincent Riley Terminal Manager, Eastern Greyhound Lines, Division of Greyhound Corporation BASIC FACTS AND COMMENTS Two very distinct problems of inter-city bus transportation face the Erie area. One has to do with connections with suburban communities. The other problem is concerned with long¬ distance transportation. The suburban bus situation is deteriorating. Traffic is declining. No profits are available with which to do extensive promotion to expand service or revenues. The prospect is that, unless some action can be taken soon, this type of service will be abandoned. Long-distance bus transportation is improving. Business in the Erie area seems to be up about 20% over 1959. New runs are being organized to accommodate an increasing volume of passengers, which formerly used rail transportation. Coaches which stop in Erie appear to get more than 30% of their total passenger load from Erie. Spoke lines going out from Erie connect the City directly with such cities as Scranton, Pittsburgh, and Oil City. The frequency and timing of bus service to Pittsburgh can and should be improved. The drivers of many of these buses are stationed in Erie. Through service has its terminals in such cities as Cleveland and Buffalo, and does not contribute greatly to improved business in the Erie community. Improved highways will greatly improve the bus service and expand the benefits which can be derived by Erie. For example, as many buses now run from Pittsburgh to Conneaut Lake as come to Erie for recreation purposes. When the thru-road to Pittsburgh has been completed, these vacationers can make the trip to Erie in faster time than they can now travel the shorter distance to Conneaut Lake. While some additional fare will be involved, it is estimated that many riders will choose to come into Erie under the improved conditions. Although the potential increase of business is difficult to estimate, the service available seems to be capable of expansion to meet any demand which may be placed upon it. COURSES OF ACTION No necessity for any community action seemed to be indicated with respect to long-distance bus transportation. The best way to improve the position of Erie in this field seems to be in the improvement of highways over which the buses run. With respect to inter-city suburban transportation, a serious problem does exist. It appears that many persons who should be interested in this problem are not even aware that it exists. A first step, therefore, would seem to be to inform key groups about the problem and explore action which might be taken. No easy remedy is to be expected. IMPLEMENTATION The Greater Erie Chamber of Commerce has undertaken to explore the problem of the suburban transportation and to bring together persons who may be interested in taking some effective action to improve the situation. No other action seems to offer possibilities of being effective. 121 CASE STUDY AREA NO. A17 TOURIST ACTIVITIES RESOURCE PERSONS Ted Hustead Owner and Operator, Wall Drug, Wall Lavern Mitchell Vice President and Manager, 1st National Bank, Sturgis Evelyn Heinbaugh Editor, QUEEN CITY MAIL, Spearfish Earl Brockelsby Owner and Operator, Black Hills Reptile Gardens, Rapid City Paul E. Besselievre Manager, Black Hills, Badlands & Lakes Ass'n., Sturgis BASIC FACTS AND COMMENTS The growth of the Tourist Industry of South Dakota has been tremendous. A very good ex¬ ample is Rapid City. Rapid City had only two tourist courts in 1927 when President Calvin Coolidge came to visit. Now the city has over 100. During that same period of time, tourist traffic increased from 400,000 to 2,730,000 persons and the dollar volume from $19,000,000 to $106,000,000. The Tourist Industry of South Dakota is the second largest industry - second only to agriculture. The growth, as a whole, has been a gradual growth on an average of 3% per year. This is healthy as this allows the industry to keep up with its growth. Only on rare occasions (and then only in spots) have we not been able to take care of the demands. Private enterprise is keeping up with the demands. We are fortunate in the Black Hills in having a relatively small area, approximately 50 x 100 miles area. Therefore, a tourist does not have to drive for days to get around our area. In a matter of a few hours it is simple to get from one location to another. The Black Hills is also fortunate in having diversified, God given scenery which includes the limestone cliffs and canyons in the northern hills, the granite peaks and pinnacles of the southern hills, pine and spruce tree covered mountain slopes and valleys, and the most exposed rock, mineral, and geological formations that can be found in any other area of its size. We are also very fortunate in having many man-made attractions that are outstanding, such as Mount Rushmore National Memorial, the Black Hills Passion Play, and many other famous attractions and celebrations. All this makes the Black Hills of South Dakota the place to go for a vacation, with diversified entertainment and many things to do and see. In 1939 the Chambers of Commerce in this area organized the Black Hills and Badlands Association to act as a tourist promotion agency for the entire area. Each Chamber contributes to the central organization. This Association has been very successful in fulfilling its obligation. A recent survey (taken by a private firm) proved this when they stated 1 out of every 6 tourist visits our State through the efforts of the Black Hills and Badlands Association. Their motto is: "Remember, traffic does not just happen, it is promoted." Recently this Association changed its name and went state-wide and is now called the South Dakota Black Hills, Badlands and Lakes Association. COURSES OF ACTION Expansion of Tourist Activity in the area seems to be predicated on lengthening of the season and doing a better job with the tourist when he is here so he will stay longer. (The average tourist 123 Case Study Area No. A17 TOURIST ACTIVITIES spends four days in South Dakota, three days of that in the Black Hills area.) The following are a few suggestions that could be followed: 1. Year around activity with more emphasis placed on Fall and Winter. a. Winter sports activity - skiing, skating, tobogganing - need of a winter show of some kind with Ice Palace, etc. b. Greater emphasis on conventions plus smaller meetings as off season business. c. More emphasis on climate and altitutde. d. Need of an exclusive-type resort to cater to well-to-do. e. Special rates on off season for the entire area and advertise the same. 2. Greater emphasis placed on Family Vacations for the area. a. Need of good, clean accomodations at more reasonable rates where an entire family of average income can stay for a week or longer. b. More family type recreation - chuck wagon feeds, campfire programs, cowboy singers, etc. c. More swimming areas. d. Direct more advertising (display and promotion) directly to the children. e. Need of more Youth Camps or Youth Ranches. 3. Upgrading of Custer State Park. a. Upgrading of existing facilities. b. Better roads to remote areas (buffalo pasture). c. Development of swimming facilities. d. Need to develop more activity for the entire family to lengthen their stay. (See point 2, item b.) e. Liquor licenses for the concessions. 4. Development of western section of the Black Hills. a. Need a hard surfaced road from the Custer area north to the Cheyenne crossing area and a continuation of State 40 west - to open that area for future expansion. b. Need of opening western section and making it possible for private capital to have private development. 5. Water a. Survey needed to see if there is anything that can be done to get the streams running again. 124 Case Study Area No. A17 TOURIST ACTIVITIES b. Further development needed to make recreation areas and/or resorts at Iron Creek Lake, Roubaix Lake, Pactola, Sheridan, Sylvan, and Center Lakes. 6. Evening Entertainment a. Local celebrations and annual affairs should investigate the possibility of having their affair in the evenings under the lights. b. Attractions open in the evenings and lighted properly for the occasion. c. Indian pow-wows, etc. (See point 7.) d. See point 2, item b. 7. Indians. This is the west and is considered Indian country. We are not doing enough along this line. a. Need more Indians in full-dress. b. Dances or pow-wow. c. Authentic Indian village. 8. Cultural Development a. Summer school or camp for artists. b. Summer school or camp for writers. c. High School and/or College band camp. d. High School and/or College choral camp. e. South Dakota Columnist for all South Dakota Papers. 9. Encourage further development in the Badlands National Monuments. a. Introduction of wildlife, such as wild horses and/or buffalo, mountain sheep, etc. b. More on-the-spot displays of fossils, strata, and early civilization. c. More well-marked nature trails. d. Swimming pool at Cedar Pass for camp grounds. 10. Missouri River Development. a. Recognize the value of the Missouri River Development as a compliment to the Black Hills area. 11. Encourage early development of Bear Butte State Park. 125 Case Study Area No. A17 TOURIST ACTIVITIES f 12. Co-ordination of Tourist Publicity. a. Encourage individual tourist operators and Chambers of Commerce to advertise along with the State Publicity Advertising Program in newspapers, thus giving a greater emphasis for the entire area (and state.) b. Provide individual tourist operators with cost figures and avenues of publicity available and counciling on the most beneficial types of advertising. c. Instead of each city getting out a brochure on their particular city - encourage all the cities to go together into one book. This could be cheaper, chance for larger quantity, and better quality. 126 CASE STUDY AREA NO. A18 CONVENTION PROMOTION RESOURCE PERSONS William Barnes Owner, Barnacle Bill's Eastern Shoreman Restaurant; President, Pennsylvania Restaurant Association Robert M. Becker Treasurer, Trask, Prescott and Richardson Company; President, Downtown Erie Council George Brown Owner, Lake Road Motel Chester L. Davis Owner, Priscilla's Charcoal Pit James Gray Sales Manager, Hotel Lawrence BASIC FACTS AND COMMENTS Erie, once a prominent site for state and regional conventions, gradually removed itself from the convention "beat" until, by 1955, it was the site of not more than a dozen small con¬ ventions a year. In general, statewide conventions settled on a pattern of using Philadelphia, Harrisburg and Pittsburgh in rotation for their meetings. This situation was not changed until Erie began to take a more positive attitude about the desirability of conventions. The renaissance started with the development of the vacationland centered around Presque Isle State Park. As motel facilities began to increase, the desirability of conventions became obvious. However, the first efforts to attract conventions were focused on small groups — generally from 200 to 1,000. The reaction of convention groups to Erie was so favorable that by 1959, annual conventions had grown to more than 30 a year, totalling about 12,000 delegates. In 1959, the EREPA Grotto, a Masonic organization, played host to an area convention of about 500 people and the meeting was considered a success. Enthusiastic local Grotto members then went to their regional meeting —the Ohio State Grotto Association, encompassing Ohio and parts of West Virginia, Indiana and Pennsylvania — made a bid for the 8,000-delegate convention for August 25-28, 1960, in the peak of the Erie tourist season. They were successful, and Erie found itself in the position of having to grow up, conventionwise, in a hurry. Committees were immediately formed to survey housing and meeting facilities. Somewhat to their surprise, committee members found that Erie's accommodations were considerably more adequate than previously recognized, and that the convention could be housed comfortably by re¬ serving in advance about 30% of available, acceptable hotel and motel rooms. Meeting rooms were found for all scheduled events. Encouraged by the ease with which the Grotto Convention could be handled, the Greater Erie Chamber of Commerce and the Hotel Lawrence began an aggressive convention solicitation. First success came with the obtaining of the National Knights of Columbus Bowling Tournament, which will bring 10,000 bowlers to Erie over a period of ten week-ends from March to May, 1961, and the National Bowling Association's Women's Tournament of 1,500 bowlers at the same time. A whirlwind campaign on the floor of the Pennsylvania State Legion Convention in Philadelphia obtained the State Legion meeting of from 8,000 to 10,000 delegates for Erie in July, 1960. Then came a flood of inquiries about facilities available in Erie for conventions of all kinds at many different seasons of the year. This taste of convention business, and the indication that more could be had by aggressive promotion, aroused great interest among the resort operators and businessmen in Erie. Conventions in other than summer months offered one of the most promising means of producing year-round volume for hotel and motel facilities. They also prom¬ ised increasing commerce. 127 Case Study Area No. A18 CONVENTION PROMOTION Recognizing the need for a convention promotion program which would be more orderly and larger than could be conducted by existing promotional arrangements, the Chamber took steps in the summer of 1960 to organize a full-scale Convention Bureau as an arm of the Tourist and Con¬ vention Division, with priority status equal to that of the tourist promotion effort. Included in the early organization were representatives of hotel, motel, restaurant, amusement, boating, local transportation and retail interests. COURSES OF ACTION If the convention solicitation is to achieve its full potential, the established effort within the Greater Erie Chamber of Commerce must have the cooperation and assistance of many individuals and organizations. Numerous committees must be created and manned with members of the com¬ munity to make the visitors feel at home in Erie, and to be sure that all their reasonable wants are met. A workable and realistic budget must be provided to make available the "tools" of convention promotion. IMPLEMENTATION The fact that the present operation of the convention effort by the Greater Erie Chamber of Commerce and Hotel Lawrence has been so successful seems to be the best argument for leaving responsibility for the development of the larger convention program in the same hands. 128 CASE STUDY AREA NO. A19 RELIGIOUS RESOURCES RESOURCE PERSONS Architect, Kemp, Bunch & Jackson Rabbi, Jewish Temple Attorney Executive Secretary, Jacksonville Urban League Staff, Jacksonville Area Chamber of Commerce The Jacksonville religious community, composed of the Protestant, Catholic and Jewish congregations, gives our city a religious resource unparalleled by many cities of comparable size. Through some 340 churches and missions, the Jacksonville community can fulfill its religious needs. Our churches register over 280,000 members. The large and small churches of many varied denominational backgrounds find Jacksonville the place to live and serve. The activities of our combined church community provide for not only the religious climate, but also for a climate of community cooperation and harmony in which to work. The religious community services our city through church hospitals, homes, playgrounds, and recreation halls, as well as through their spiritual guidance. An example of church partici¬ pation is reflected in their athletic activities in the City recreational leagues. This year's rec¬ ords show 39 church softball teams, 20 basketball teams, and 6 church table tennis teams. Many church teams enter leagues under non-church names. JEWISH The Jacksonville Jewish community is composed of three synagogues representing the Re¬ formed, Conservative, and Orthodox elements of the religion. With a combined membership of 1,550 families, the Jewish community sponsors many religious activities. The Jewish churches operate two kindergartens, one first and second grade parochial school, and each church operates Hebrew schools and Sunday schools. An adult education program is also offered by one of the synagogues. The Jacksonville Jewish Center, a synagogue center for the community, offers a gymnasium, sponsors athletic teams, and many other athletic activities for the community. The River Garden Hebrew Home for the Aged is sponsored by the Jewish community of Duval County. CATHOLIC The Catholic churches, even though comparably few in number, represent the second largest congregation in Jacksonville. The 17 Catholic churches list approximately 60,000 members. Jacksonville is a part of the diocese of St. Augustine, presided over by an Archbishop. How¬ ever, St. Augustine is not an archdiocese. It does, however, govern about half of the State of Florida. The division of the state into two administrative areas is new. Historically, the diocese dates back to the earliest Spanish settlement. Now a diocese at Miami shares supervision of Florida's Catholic churches. The proximity of Jacksonville to the City of St. Augustine makes this a headquarters for many activities. One great Catholic organization that operates St. Vincent's Hospital is the Sisters of Charity. This organization is not a part of the diocese, but works in close cooperation with it as well as with other Catholic groups. Chairman - William D. Kemp Rev. Sidney M. Lefkowitz Daniel A. Naughton Junius Bowman Don F. Arnow 129 Case Study Area No. A19 RELIGIOUS RESOURCES The Catholic Charities, Inc., is a component organization of the Community Chest and serves as a family and child welfare organization. It also performs service tasks for All Saints Home for the Aged, St. Mary's Home for Boys and Girls, and the Morning Star, a school for handicapped children. The Catholic school system is the largest of all church operated school systems in Duval County. The Catholic churches operate one senior high school, ten first through eighth grade schools, six of which have kindergartens, two kindergarten through seventh grade schools, and one kindergarten through fourth grade school. PROTESTANT For the purpose of this survey only the Methodist, Baptist, Presbyterian, Episcopal, and Lutheran churches were studied in detail. This in no way detracts from the influence and im¬ portance that the other denominations play in our community. METHODIST The Methodist community, composed of 45 churches, has a total church enrollment of over 26,700 members. One of the largest projects of the Methodist community is centered in the activity of the Methodist women. The Methodist women sponsor Brewster Methodist Hospital. The churches do not operate elementary schools. However, many churches do have kindergartens. In the near future the Methodist community will be building the Wesley Manor Community of the Aged. This facility will provide for the needs of the aged for specialized housing. PRESBYTERIAN Of the 21 Presbyterian churches in the Jacksonville Area, 20 of these are affiliated with the Southern churches and the remaining church is of a Northern or United Church affiliation. A combined membership of the two Presbyterian groups total more than 11,100. Five kindergartens are operated by the churches and one church has a kindergarten through sixth grade school. BAPTIST The Baptists comprise the largest element of the Jacksonville Protestant community. The Baptist congregations are represented by two Conventions, the Southern Baptist and the Independent Baptist. Of the two Conventions, the Southern Baptists are further divided into Associations. Duval County is represented by the Northeast, Black Creek and Jacksonville Associations. The Southern Baptists have 110 member churches in the Jacksonville area. The Independent churches have 21 representative churches. A combined membership of approximately 77,000 makes this the largest congregation in Jacksonville. The Jacksonville Association and the Northeast Association own and operate the Jacksonville Baptist Home for Children on Bartram Road. This large facility has been serving the community for many years. The Jacksonville Association churches, as well as churches in other Associations affiliated with the Southern Baptist Convention, support the work of the Baptist Memorial Hospital. The churches of the Southern Baptist Convention operate 13 kindergartens in the area and the Independent Baptist Churches have two kindergartens and one kindergarten through 10th grade 130 Case Study Area No. A19 RELIGIOUS ACTIVITIES ) schools. Three of the churches in this area have quite extensive athletic facilities, some em¬ ploying a full time athletic director. However, most of the Baptist churches do engage in athletics to a lesser extent in their recreational and educational programs. EPISCOPAL Jacksonville's Episcopal congregation of over 14,700 operate 24 churches. Of these 24 churches, 14 are self-supporting and ten are missions. The Episcopal parishes sponsor and operate many kindergartens and schools in our com¬ munity. Five of the parishes operate kindergartens, two have kindergarten through eighth grade classes and one parish operates a kindergarten through fourth grade schools. The Church has one "economy" store and two "nearly new" shops to serve the community. An Episcopal book store also serves as a valuable community resource. LUTHERAN Fifteen churches serve the 6,500 Lutheran communicants of Jacksonville. Two of these churches operate day school kindergartens, but there are no schools beyond this level. OTHERS A large part of Jacksonville's religious community consists of many other denominational and inter-denominational churches. Some of these representative churches and parishes are as follows: Christian, Assembly of God, Christian Science, Church of Christ, Church of God, Greek Orthodox, Mormon, Nazarene, Seventh-Day Adventists and various other churches. These churches provide the citizenry with every type of religious background. NEGRO The Negro population comprises 23% of the entire Duval County population. For this fact the Negro religious community bears particular mention. The Jacksonville Negro Community finds that their religious resources play a large role in molding their everyday life. Represented by over 200 churches of various denominational backgrounds, the needs of the negro community are aptly served. To a large extent the Negro religious community parallels that of the white. There are many rest homes, homes for the aged, shelters and hospital facilities, recreation areas and athletic facilities provided by the churches. SUMMARY The entire Jacksonville Community is based on a firm religious foundation. This can be noted by the percentage of population who are enrolled in our churches, the vast complex of facil¬ ities which spread all over our city and the general atmosphere of a religious influence. Jacksonville is indeed to be proud of its religious resources. 131 CASE STUDY AREA NO. A20 RECREATIONAL RESOURCES RESOURCE PERSONS John Jeter O. B. Johnson Virginia Famiglietti Dave Barton Dorothy Williams Mary Brust John Ryan Alys Siebenthaler Recreational Director, City of Hallandale Director, Dixie Park Secretary, Hallandale Park Commission Publix Supermarket Mother's Council of Hallandale, Inc. President, Hallandale Garden Club Chief Lifeguard Member, Hallandale Park Commission BASIC FACTS AND COMMENTS Hallandale provides all the wonderful outdoor recreation indigenous to its year round warm and balmy climate and its ideal location on the sunswept shores of the south Atlantic Ocean, with the Gulf Stream flowing at the horizon. This includes swimming, boating, fishing, skin-diving, water-skiing and what you will. As a vacation land community, there are also the usual amuse¬ ments such as theaters, fine restaurants, and spectator sports, such as thoroughbred and grey¬ hound racing within the city limits, jai alai a few miles away. Golf courses abound in the area, and there are tennis courts, and driving ranges, and go-cart tracks, and bowling alleys (the most luxurious), and even an ice-skating rink! In the area of public recreational facilities, the City of Hallandale provides: City Park - an 8 acre, fenced, and supervised area with an Olympic swimming pool and adjoining dressing rooms, showers, check room, first aid and life-guard rooms; a well-lighted ball field with bleachers; playground area and tot lot; basketball court, boxing ring, shuffleboard courts; several service buildings; and a Recreation Building with office and storage rooms. Dixie Park - a 5-1/2 acre, fenced, supervised area in the northwest section, with identical swimming pool and facilities; lighted ball field with bleachers; playground area; roofed patio. An additional 3/4 acre is available for development. Binstock Park - a 2 acre plot of ground in the northeast section, leased to the City on a "vacate in thirty days" basis. With exception of a corner reserved for tot playground equipment, this is a park for adults, with an activity section including shuffleboard court, horseshoes, picnic tables, etc. The Park was landscaped by a voluntary group of citizens, as part of the Chamber of Com¬ merce Beautification Program. Rock gardens, fountain, flower beds, walks and benches create a beautiful, tranquil place for relaxation. School grounds and buildings - various schools permit use of facilities by the Recreation Depart¬ ment especially during the summer program, when the School Board provides supervisors and instructors. Public Beach - 240' of ocean beach; bathhouse; guarded; paved parking area, metered to help defray expense; concession stand leased to private individual; until the high water of this past spring, there was a pavilion with picnic chairs and tables; presently groined to prevent further erosion, but under study now as part of this entire area for further and more effective erosion prevention. The Parks and Recreation Boards of City Park and Dixie Park are each composed of five appointed members who serve in an advisory capacity at the pleasure of the City Commission. The Recreation Director, as a department head, is charged with the responsibility of providing a sound, wholesome recreation program to meet the needs of the community; developing, main¬ taining, and protecting the necessary facilities. He performs his duties in cooperation with the Board and is responsible to the City Manager and City Commission. 133 Case Study Area No. A20 RECREATIONAL RESOURCES In the fiscal year 1961-62, the City Park budget was $42,000, with over half the budget spent in salaries of the five full-time and three part-time employees of the Park, Pool, and Beach. The current budget shows a $2000 increase. The Dixie Park budget of $26,500, is similarly dis¬ tributed, with two and a half year-round employees, and five extra employees in the summer. Both parks credit volunteer help and interested organizations for much of the success of their fine programs. City Park has maintained an A1 rating by the national association for several years, and is considered by local citizens as a municipal facility to be proud of. Dixie Park, a member of the Orange State Recreation Association, is "out in front and has been for a number of years". It was pointed out that both parks could use a separate building located away from the park for "socializing" without planned activities by the late teen and early twenties group. Attempts to encourage adults or senior citizens to participate in planned activities other than arts and crafts have met with little success in past years. It was the concensus that facilities of the parks should be available for these older groups, but improved only when demand is evidenced. The population of Hallandale is expected to double in the next ten years. There is even now insufficient land for park purposes. The recommendation made by the American Institute of Park Executives of "one acre for every 100 residents" is not very realistic for Hallandale where real estate values are high; but unless we plan today and prepare for a tomorrow with more people with more leisure time, the recreation facilities will become totally inadequate. Costs are still rising! COURSES OF ACTION 1. Acquisition of more beach property. This is important to the entire community, not only for the convenience and enjoyment of residents, but because the BEACH is the main reason most visitors give for coming to Florida. .. and the tourist income represents 65/ of every $1 in our pockets, according to statistics of this section of Florida. Second, to make it even more appealing a new and attractive pavilion should be built — perhaps a boat launching site . .. and with more property, even a bandshell or community center or a pier is possible. 2. Set aside land for parks NOW . Wherever suitable land is now available, it should be purchased, or premium prices will have to be paid later, if we are fortunate enough to find prop¬ erty still available. For instance, the lot directly across the street from Dixie Park would make an ideal site for the planned Recreation Building, and would leave the playground area undisturbed. 3. Increased use of school grounds . Recreation buildings on these grounds might be made from the "portables" as they are discarded for classroom use. Since the Broward County School Board owns these properties, it would be in line to ask for County funds for improving the school grounds within cities for recreational use. 4. County Parks . To improve the recreational facilities of Broward County as a whole, the City might, through the League of Municipalities, urge the County to use its recreational budget to provide large tracts of land for county wide recreational use; and to develop, promote, and main¬ tain County Parks in a manner similar to Dade County's Greynolds or Crandon Park. 5. Develop Water Conservation areas of the Central and Southern Florida Flood Control Districts, for boating, fishing, picnicking, camping, etc. IMPLEMENTATION Final authority and control of the purse strings for acquisition of additional Beach property and/or its improvement lies with the Mayor and the City Commission. 134 Case Study Area No. A20 RECREATIONAL RESOURCES Other courses of action are based upon the cooperation and support of the Board of County Commissioners and the Board of Public Instruction. 135 I CASE STUDY AREA NO. A21 CULTURAL RESOURCES RESOURCE ORGANIZATIONS A. C. E. Suitcase Museum City Center Ballet of Tampa, Inc. Events Committee, University of South Florida The Friends of the Library Metropolitan Lyric Theatre Modern Dance Theatre Museum of Science & Natural History Peninsular Players, University of South Florida Sunstate Opera Federation Tampa Art Institute Tampa Civic Ballet, Inc. Tampa Community Concert Ass'n. Tampa Community Theatre Tampa Lyric Theatre, Inc. Tampa Municipal Museum Tampa Philharmonic Association University of Tampa BASIC FACTS AND COMMENTS "In the majority of communities the developing of cultural groups is haphazard at best, depending frequently on a small group of zealots who are interested primarily in one facet only of the arts and letters." This statement could apply to Tampa with its twenty-two inde¬ pendent cultural groups who must shift pretty much for themselves insofar as finance, pro¬ gramming, scheduling, and finding appropriate facilities for their presentations. However, in spite of this handicap the cultural life of Tampa has improved over the last five years. In these five years Tampa has taken a giant step forward in developing a Tampa Philharmonic Orchestra under the direction of Alfredo Antonini. This accomplishment has done much to spark the cultural interest of our community and has, to some extent, improved support and attendance in other cultural activities. Another of the benefits derived from having the Tampa Philharmonic Orchestra is to give exclusive concerts for our school children in both the ele¬ mentary and secondary levels. This early training and exposure in fine music can do much to bring added support to the cultural affairs of our community in years to come, when these young people have reached maturity and can contribute to the arts. An attempt has been made to survey the various cultural groups in Tampa and try to get a picture of their size, financial stability, number of programs being presented each year, the amount of participation in these programs both from the point of view of attendance and financial support. The following organizations responded to this survey: 1. Tampa Philharmonic Association Organized in 1950 to develop, promote and maintain a symphony orchestra in the Tampa Bay Area for the purpose of giving the people of this area an outlet for musical ability and a means of developing their appreciation for live symphonic music. Mrs. Jody Littlefield, P. O. Box 449, Tampa, Florida, is the executive secretary of this organization. There are eleven presentations per year in the D. B. McKay Auditorium. Six are open to the public and five are for membership only. It is estimated that about 1,900 people actively support this program. The budget is approximately $14,500 per year with $10,000 obtained from private sources, $3,000 from the County, and $1,500 from the City. This association owns no real estate. 2. Tampa Community Concert Association Organized in 1938 to promote musical and cultural interest in Tampa. Mr. William C. McLean, Jr. is President and they do not have an executive secretary. 137 Case Study Area No. A21 CULTURAL AFFAIRS This organization has five presentations per year which are open to the public on the basis of membership or on a single ticket basis. D. B. McKay Auditorium is the scene of these presentations with an average attendance of about 1,900 people. This association is not subsidized at all and relies solely on private subscriptions. This association owns no real estate. 3. The Sunstate Opera Federation Organized about eight years ago (1955) to bring opera to Tampa to enrich the cultural life of the community. Mrs. Norma Tina Russo is the Director. Two operas are planned each season, with an average attendance of about 1,600 people. These operas are open to the public. This federation is privately supported without subsidization. The association owns no real estate. 4. The Tampa Community Theatre Organized in 1927 by a small group of theatre enthusiasts to afford entertainment, cultural education to Tampa and adjacent communities in the field of living theatre. This includes the presentation of plays for adults, a children's theatre, and training in the field of theatre arts for those interested. The resident director of this organ¬ ization is Anita Grannis. Six plays per year are presented, plus two children's plays. All are supported by ticket sales, memberships, sponsors, and patron contributions. There is no subsidization from any government office for this group. Approximately 1,400 people attend these presentations. The Tampa Community Theatre owns a building in Drew Park on the corner of West Alva and North Hubert Streets. The value is about $60,000. 5. The Tampa Lyric Theatre Organized in 1960 for the purpose of providing outlets for talented and highly trained singers, dancers, and actors of the area; to give Tampa the best of musical comedy and operetta, to add to the theatre's cultural offerings. The president is Mr. Lyman Wiltse. Three presentations a year are planned with an average attendance of 2,500. The finance of this organization is private, there is no subsidization. This organization owns no real estate, nor does it employ an executive secretary. 6. Metropolitan Lyric Theatre Organized in October, 1961, its purpose is to serve as a show case for Bay area actors with musical talent and to bring an instrument of education and culture to the community; to present a full season of professional-level Broadway musicals. There are no pro¬ fessionals employed in the group. There are three presentations per year supported by private sources and ticket sales. There has been an average attendance of about 2,000. All presentations are open to the public and are held in the D. B. McKay Auditorium. This group owns no real estate. 7. Center City Ballet of Tampa, Inc. Organized in 1959, the President is Mr. Lawson B. Jones, there is no executive secretary. The purpose of the organization is to promote better ballet on a cultural and educational basis and to present ballet scholarships through instruction classes without charge to deserving students. Also, to help attract and develop ballet and give Tampa's talented young dancers an outlet for their talents. There is an average of four presentations per year, there is an average attendance of from five to six hundred per performance. These presentations are developed by five professional people, fifteen amateurs, and 138 Case Study Area No. A21 CULTURAL AFFAIRS four teachers who are affiliated with this organization. Presentations are held in either the Community Theatre or the D. B. McKay Auditorium. All presentations are open to the public and support of these presentations is by sale of tickets and private subscriptions. 8. Tampa Civic Ballet, Inc. Organized in July, 1953, to offer opportunity to the talented dancers of the area to per¬ form in the greatest classical ballets and provide outlets to the latest theatrical arts. One of its aims is to bring to Tampa other ballets that are sound in their classical construction and thereby help raise the standard of our cultural life. Mrs. Sam Zbar is President of the organization and the executive secretary is Mrs. Mateo Pardo. There are two to three presentations per year, supported by ticket sales, private sub¬ scriptions, and a small grant from Hillsborough County. The presentations are either in the D. B. McKay Auditorium or the Tampa Community Theatre. This group also participates in the Southeastern Regional Ballet Festivals. All presentations are open to the public. This organization owns no real estate. 9. Modern Dance Theatre Organized in 1961 to stimulate interest in modern dance and to create an interest in the temporary art forms; to advance culture in Tampa. Mr. Frank Rey is President, Mrs. Cecilia Fernandez, the executive secretary. There were two presentations given the first year, open to the public and supported by the sale of tickets and by private subscriptions. These presentations are held either in the Federated Woman's Club or the Frank Rey Dance Theatre. Average attendance at these two performances was about 900. This organization owns the Frank Rey Dance Theatre, valued at approximately $25,000. 10. University of South Florida The cultural events of the University of South Florida number about 125 per school year. The Peninsular Players of the University of South Florida present five or six productions per year, and usually have an attendance of about 3,000 per production. The University of South Florida is privileged to have one of the best theatres in the United States, with a capacity of 597 seats. Mr. Sam Dickinson is President of the Peninsular Players, and Mr. John S. Caldwell is the executive secretary. The Events Committee of the University of South Florida has as its chairman Dr. A. A. Beecher. The purpose of this committee is to bring to the students, staff and com¬ munity cultural and educational programs of all kinds. In a school year there are ap¬ proximately 120 productions. Their average attendance is approximately 400 per program, and are presented in the Theatre Building of the University. Presentations are available to the public by the Events Committee. The Events Committee has a private endowment of approximately $20,000 per year. 11. University of Tampa Dr. Josiah L. M. Baird is Chairman of the Department of Arts at the University of Tampa. It is his feeling that colleges and universities have an obligation to educate thinking individuals who, through their own free choice, can and will demonstrate through word and action their belief in the value of the individual, of human dignity, and of person freedom through responsibility. Hence, the overall objective of the University of Tampa is to provide a program of high quality and personalized education which will equip the student with the necessary 139 Case Study Area No. A21 CULTURAL AFFAIRS fundamental knowledge, intellectual skill, standards of value, and the moral motivation to advance knowledge of the problems of our rapidly changing world for the good of mankind. In the Fine Arts Department, about 30 presentations per year are planned and all are open to the public. They are held on campus, Tampa and vicinity, and all Florida. 12. The Association for Childhood Education Suitcase Museum Organized in 1960, the President is Mrs. E. W. Hufford, and projects chairman is Mrs. Wilma Jane Humphries. Purpose of the organization is to circulate museum exhibits among the children of Hillsborough County through the public, private and parochial schools, for the purpose of expanding present facilities into a children's museum. Presently there are approximately 800 members of the Association of Childhood Ed¬ ucation. The support of this organization is by private subscription. The headquarters for ACE will be in the D. B. McKay Auditorium. A steering committee to further plans for the Children's Museum has been established. 13. Tampa Municipal Museum Organized in 1933 to preserve the treasures of the old Tampa Bay Hotel for posterity and to develop it into a general museum with a Children's Museum included. Mr. James E. Wall is chairman of the Board, and the museum is located in the south wing of the University of Tampa. The museum is open to the public and sponsors exhibits of all kinds. The museum is endowed by the city with a yearly grant of $5,266.48. 14. The Friends of the Library Organized in 1960 to help in any way the construction of a new central library in down¬ town Tampa. Judge John Germany is the President. There are approximately 100 members of this organization, who pay a membership fee of $2.00 per person. This is a private organization without grants from governmental agencies. No real estate is owned by this group. Their present program consists of having prepared five, ten and fifteen minute talks with colored slides to show the need for a new library, and are presented on request at various civic and social meetings. 15. Museum of Science and Natural History Organized in June of 1960. The President is Mrs. Grace Branch, the executive sec¬ retary is Mrs. George Dill. The purpose of this organization is to create a museum, zoo, and planetarium. The facilities are open year round to the public, and there is an average attendance of about 600 per month. Five lectures on various subjects are planned per year, and are also free to the public. Property owned by the Museum of Science and Natural History is valued approximately at $60,000. There is also a grant from the county of $10,000 per year. 16. The Tampa Art Institute Organized in 1926 to encourage art appreciation in the Tampa area and to make avail¬ able facilities for instruction and teaching of art. President is Mr. George Hochschwender, the executive secretary is Mrs. Blanche Mougel. The Tampa Art Institute is a non-profit organization, financed by private subscription, membership and grants from the City and County governments. The institute has about 300 members, and has at least nine major exhibits per year. The facilities of the In¬ stitute are open to the membership for art lessons, also classes are open every Saturday 140 Case Study Area No. A21 CULTURAL AFFAIRS morning for children of the members to take instructions in art. Once a year the Tampa Art Institute sponsors an exhibit for the entire Hillsborough school system. The In¬ stitute supervises the fine art exhibit at the Florida State Fair. This year, 1962, they have had 1,000 entries to this art exhibit. For their work in this program, they are given their rent free in one of the fair buildings at 320 North Boulevard. Available from the Institute is the Batell Gallery, which is a collection of art that is available for exhibition at civic or social functions where they can be exhibited. All of the material in this gallery is for sale. The following organizations are active in Tampa, however, we do not have sufficient infor¬ mation on them to be included in this report: The Tampa Theatrical Society - Mrs. Cesar Gonzmart, President The Tampa Realistic Artists - S. R. Brocado, President Tampa Academy of Fine Arts - Larry Porth, President Student Arts Club - Mrs. J. H. Harmon, President The Spanish Little Theatre COURSES OF ACTION With the exception of the two universities, only two of the cultural groups surveyed actually own building property. Only one organization reports current plans to study the possibility of acquiring their own facilities in the future. Perhaps the reason for this is that the consensus of opinion among the groups is that a central fine arts building should be built for the use of all the groups. The recent renovation of the D. B. McKay Auditorium has improved the presentation facilities of the community somewhat, however, it seems to be the feeling that this would be no substitute for an eventual fine arts center. The problems facing a city the size of Tampa in finding an effective way to coordinate, promote and develop the educational and cultural life of the community have been dealt with effectively in many cities throughout the United States. In the fall of 1953, the American Symphony League, Inc. received a grant from the Rockefeller Foundation "to undertake a survey of coordinated arts programs for the purpose of finding out how and why the coordinated programs came into being, how they operated, what were their func¬ tions, and whether or not the coordinated programs offer logical solutions to problems of symphony orchestras and other art groups." It is felt that the basic conclusion from this survey should be included in this report. 1. Concentrated effort on the part of several or all arts groups within a community can lead to achievements which cannot be matched when undertaken by a single arts group. 2. There is no sure magic in the mere concept of fact of coordination of efforts by several arts groups. The magic comes only through leadership made strong through vision, experience, dedication, a sense of community service and through understanding that a sound development in the arts demands constant attention to ever-rising artistic standards. 3. Just as there is potential strength in coordination of efforts in the arts field, there also is potential danger. In a community in which the arts groups remain completely autonomous, nearly always there will be found strength, vitality, growth and development among some of them. Whereas the local theatre and ballet groups may be suffering a period of 141 Case Study Area No. A21 CULTURAL AFFAIRS temporary doldrums, the sculptors, painters, and the chamber music society may be making rapid strides forward with the result that the overall artistic life of the com¬ munity holds promise for future development and growth. Whether the educational and cultural interests of our city can best be served, at this point of our cultural development, by an arts council is still not firmly resolved by the leadership of the stronger groups. However, there is an appreciable agreement that a step in this direction is possible by establishing a coordinating group to: 1. Coordinate scheduling of events. 2. Coordinate publicity on cultural events. 3. Produce a calendar of events. Therefore, it is considered necessary that the leadership in the cultural groups explore the feasibility of setting up a coordinating committee whose function would be spelled out so as to be understood and warmly supported by all groups. IMPLEMENTATION There will be continued progress in the development of the cultural affairs of Tampa so long as leadership within the cultural groups remains active and enthusiastic. Other leadership in the community will be needed and should be recruited among key persons who are convinced that Tampa must have a first-rate cultural program. The Cultural Affairs Committee of the Greater Tampa Chamber of Commerce is a stable organization that can perform a service to the various cultural groups in Tampa by acting as a focal point from which to begin the development of a coordinating council. The leaders within the cultural groups should continue their studies and if possible, ac¬ celerate them as to location, size and financing of a fine arts building. Also, to study the plans of the new main library as they pertain to space for cultural activities. It may be that the im¬ mediate needs for a building of this kind can be met in the framework of the present plans of the library. Citizen participation in the cultural affairs of the community should be a constant challenge to all cultural groups. Only when the community is sold on the cultural program will there be sufficient participation and financial support to insure our goal of Tampa being recognized as a cultural city. 142 CATEGORY B INDUSTRIAL DEVELOPMENT SECTION CASE STUDY AREA NO. B1 - CASE STUDY AREA NO. B2 - CASE STUDY AREA NO. B3 - CASE STUDY AREA NO. B4 - CASE STUDY AREA NO. B5 - CASE STUDY AREA NO. B6 - CASE STUDY AREA NO. B7 - CASE STUDY AREA NO. B8 - CASE STUDY AREA NO. B9 - CASE STUDY AREA NO. BIO - CASE STUDY AREA NO. BU¬ IS THE BUSINESS CLIMATE CONDUCIVE TO FURTHER INDUSTRIAL DEVELOPMENT? WHY INDUSTRIES LOCATE COMPETITIVE INDUSTRIAL POSITION CONDITION OF EXISTING PLANT AND EQUIPMENT POSSIBILITIES OF EXPANDING EXISTING PLANT FACILITIES INDUSTRIAL LABOR SUPPLY WAGE RATES RESOURCES FOR INDUSTRIAL EXPANSION NEED FOR AN ECONOMIC BASE STUDY AS A FOUNDATION ON WHICH TO BUILD A BETTER INDUSTRIAL POSITION WHAT KIND OF PROMOTION SHOULD BE USED TO IMPROVE INDUSTRIAL POSITION? SHOULD THERE BE AN INDUSTRIAL DEVELOPMENT PROGRAM? 143 CASE STUDY AREA NO. B1 IS THE BUSINESS CLIMATE CONDUCIVE TO FURTHER INDUSTRIAL DEVELOPMENT? RESOURCE PERSONS L. M. Anderson, Jr. Chairman, Committee of 100 Greater Tampa Chamber of Commerce Carl Brorein, Sr. William C. Gilmore, Jr. A. R. Timberman, Jr. Pierce Wood Chairman of the Board, General Telephone Co. of Florida Manager, Committee of 100 Greater Tampa Chamber of Commerce Industrial Consultant Sales Manager, Tampa Electric Company BASIC FACTS AND COMMENTS A recent survey of industries in the Tampa area has revealed that the business climate is generally regarded as favorable by a large majority of industrial officials. Most industries re¬ gard the City and County Government as being most cooperative and most industries feel that good government practices are pursued in Tampa and Hillsborough County. The local labor supply is generally regarded as excellent and workers in this area are gener¬ ally considered to be more productive than in some other areas of the country. Some industries, however, state that they have problems in obtaining certain labor skills. Community facilities are generally regarded as adequate, although there is some concern over the hospital situation at the present time. Tampa's cultural activities are also considered adequate. Facilities for financing are considered satisfactory also. The outstanding adverse comment concerns the tax structure and the ad valorem tax in particular. The ad valorem tax structure, in the opinion of our industry officials, is the outstand¬ ing blemish on Tampa's business climate. The tax on inventories has been a particularly acute problem for some of Tampa's industries and wholesale distribution companies. COURSES OF ACTION , 1. It is recommended that a study be conducted with the cooperation of the Florida State Employment Service to determine what types of skilled labor are in short supply in the Tampa area and to investigate means of correcting such deficiencies through training of local labor and procuring trained workers from other sections of the country. 2. A more equitable means of spreading the tax burden must be found. This problem is fully explained and discussed under Study Area No. 24, The Homestead Exemption Problem. IMPLEMENTATION A committee should be formed under sponsorship of the Committee of 100 to initiate the survey. 145 CASE STUDY AREA NO. B2 WHY INDUSTRIES LOCATE RESOURCE PERSONS Roger L. Main, Chairman Frank Taylor, Jr. Reynolds, Smith & Hills Tom F. Creed Sverdrup & Parcel & Associates Harold A. Martin Barnett National Bank Justin H. McCarthy St. Regis Paper Company John Allsopp Prudential Insurance Company of America, (Ret.) Donald S. Brown Jacksonville Area Chamber of Commerce In an effort to determine possible weaknesses of our industrial development program, about twenty companies were surveyed. Letters were sent out to major companies and case histories were reviewed as to the reasons why companies, after surveying Jacksonville, located in other areas of the Southeast. The survey results were definitely positive in one respect. They confirmed the major fac¬ tors influencing industrial locations as reported in the study made by Dr. Thomas P. Bergin and Dr. William F. Eagin of the University of Notre Dame. They surveyed 5,000 manufacturers who had expanded or relocated in seven southern states including Florida. In order of importance the major factors were: 1. Convenience to markets 2. Availability to buildings and other property 3. Availability of labor (especially engineers and skilled labor or training facilities for same) 4. Availability of raw materials 5. Home of management 6. Center of particular industry 7. Climate 8. Lower labor cost 9. Less unionization 10. Decentralization of operation Influence of a secondary nature was particularly significant in the final selection of a loca¬ tion. These include such non-economic factors as the political environment, community facilities and the attitude of individuals and established manufacturers toward new industry. INDUSTRIAL LOCATION Our survey indicated that in every case the major factors were involved in companies lo¬ cating in areas other than Jacksonville and the non-economic factors were favorable in every 147 Case Study Area No. B2 INDUSTRIAL LOCATION instance. One or more of the major factors applied to every company surveyed with a slight fre¬ quency in Florida of factors 3 and 5, or availability of engineers, and home of management respectively. Pertinent to Jacksonville, six companies located elsewhere due to high industrial electric rates and/or aversion to operating within a municipal electric system. Three companies decided against this area due to an inadequacy of an adult training program for employees. It is interesting to note that a new factor has been recently brought into the picture which indirectly influenced the decision of three companies: that of political influence and government preference with those industries participating in space and other government contract work. Also, customer influence when large corporations are involved seems to exert sufficient pressure to obviate consideration of even the prime major factors for relocation. CONCLUSION A special study on utilities is included in this section and one on higher education will be presented in another section of this report. It is considered that influence of political bodies is somewhat beyond the scope of industrial development activities, at least within this report, as well as the factor of customer influence. 148 CASE STUDY AREA NO. B3 COMPETITIVE INDUSTRIAL POSITION RESOURCE PERSONS M. M. Devorris Edward C. Doll William F. Ferrier William H. Forster Charles J. Heimberger Russell O. Newton Paul L. Nunes W. Andrew Shaner Arthur C. Sheriff Guy W. Wilson Thomas L. Yates Vice President, Pennsylvania Electric Company President, Lovell Manufacturing Company Ferrier's Hardware Company; Vice President, Erie County Industrial Development Corporation President, Hays Manufacturing Company President, First National Bank; President, Greater Erie Industrial Development Corporation Sales Manager, Erie Foundry Company Assistant Director, United Steelworkers of America Manager, Industrial Relations, Greater Erie Chamber of Commerce Secretary, American Hollow Boring Company; President, Manufacturers Association of Erie General Manager, Locomotive and Car Equipment Department, General Electric Company Vice President, Skinner Engine Company BASIC FACTS AND COMMENTS All available evidence points to the fact that, in spite of various reports which list Erie as a depressed area, the gross product of the area is expanding. This is indisputable evidence of a basic strength in the local economy. It demonstrates that Erie's industrial position must be competitive. At the same time, statistics show that industrial development and growth is at a slower rate than certain other communities. This suggests that Erie may not be sharing to the fullest extent possbile in the economic expansion taking place across the Nation. If this is true, Erie should make every effort in discovering what factors underlie this relative lack of progress and what can be done to bring about improvement. One alleged reason for the lack of progress is the absence of proper balance between indus¬ trial and commercial activity. This allegation is based on statistics published by the Common¬ wealth of Pennsylvania, which seem to indicate that in Erie industrial development overbalances the commercial segment. The figures show that Erie's economy is 48.25% industrial while Pitts¬ burgh is only 39.96% and Philadelphia is 38.00%. The implication of these figures would seem to be that Erie should be concerned about increasing its commercial rather than its industrial activity. Perhaps the basic answer to this allegation lies in the market potential available to industry as opposed to that available to commerce. As indicated in the introduction to this chapter, in¬ dustry can attempt to supply the markets of the world, and those markets are expanding rapidly. Commerce is essentially confined to the goods and services which can be distributed in Erie and the adjacent areas. While that commercial potential is important, it is not to be compared to the potential of industry. 149 Case Study Area No. B3 COMPETITIVE INDUSTRIAL POSITION Another suggested reason for lack of progress relates to the technological position in which Erie finds herself. Pennsylvania State statistics indicate that Erie is deeply involved in the busi¬ ness of manufacturing durable goods. Its relative position in this field is shown by the following percentages: Erie 37.12% - Pittsburgh 34.15% - Philadelphia 18.57% The argument is that this type of manufacturing will be put to great competitive pressure and that, in order to survive, durable goods industries must have at their disposal extensive facilities for research and development. Since many, if not most, of the durable goods manufac¬ turers in Erie do not have such research facilities, they may be forced out of business by larger and better equipped corporations. If such an eventuality takes place, the impact upon the growth and development of Erie must be adverse. The moment such arguments are presented, a variety of information is advanced in refutation. Among the points made are the following: 1. While it may be true that there are plants in the durable goods business in Erie, which are not in a strong competitive position because their present products are obsolete, the number is small and the total employment involved would not exceed 10% of the present labor force. 2. The idea that a small company hasn't access to research is a myth. Consultants are available to help with management problems or problems of product development. Pennsylvania State University, among others, now offers research facilities for not only technical development, but also industrial engineering and management engineering development. A survey was made during the summer of 1960 by the University, to determine whether or not an area representative should be located in Erie to help implement this service to small businesses which could not afford research and develop¬ ment facilities of their own. 3. Most of the small companies in Erie are not engaged in industry which could be elimi¬ nated by new technological developments. Instead, they manufacture products which constitute a servicing of other industry. They produce to specifications. They can go on doing this as long as their machinery is adaptable to the changes in demand which are certain to come. This suggests that possibly the best kind of research for Erie industry is market research rather than basic research. COURSES OF ACTION Meeting competition is, and must remain, a matter of individual plant management. How¬ ever, there are certain specific things which can be done cooperatively to improve the industrial development prospects of Erie. Manufacturers, both within Erie and from outside, have indicated some specific courses of action which would be helpful. High priority activities include the following: 1. A Directory of Products produced in Erie County to indicate both the products and the manufacturing skills which are available. 2. A center of information about products being sold in the Erie area by manufacturer's agents. 150 Case Study Area No. B3 COMPETITIVE INDUSTRIAL POSITION 3. An inventory of facilities and machinery available to permit identification of manufac¬ turers or job shop operators to do work on call from out-of-town concerns, and to indicate possible work on which local industrialists can bid. 4. A listing of distributors for services or products who could handle, locally, the business of manufacturers from other cities. IMPLEMENTATION The implementation which has been accomplished in this field has been done largely by the Industrial Bureau of the Greater Erie Chamber of Commerce. The Bureau is now engaged in preparing a new Directory of Products and in carrying out the other courses of action suggested above. The Industrial Bureau appears to be equipped and eager to take on other assignments which will help make industry in the Erie area more competitive. 151 - ■ ' t' ' ”1 CASE STUDY AREA NO. B4 CONDITION OF EXISTING PLANT AND EQUIPMENT RESOURCE PERSONS M. M. Devorris Edward C. Doll William F. Ferrier William H. Forster Charles J. Heimberger Russell O. Newton Paul L. Nunes W. Andrew Shaner Arthur C. Sheriff Guy W. Wilson Thomas L. Yates BASIC FACTS AND COMMENTS As in most cities, the condition of industrial plants and equipment varies greatly. There are instances where modernization programs have been carried out at great cost to put industries in the finest possible competitive position. Other industries, particularly older companies whose products have not moved with the times, have definitely fallen behind in their maintenance pro¬ grams and are in poor competitive position. Generally speaking, there seems to be no cause for concern about the condition of most plants. Even among those industries which have been engaged in the production of outmoded products, considerable modernization of both machinery and products is taking place. One corporation, which has been producing a single product for about 75 years, has added a new line which, in 1960, promises for the first time to be a bigger source of income than the original product. In only about 10% of the production facilities is there such obsolesence that extensive capital investments must be made to save individual companies. COURSES OF ACTION Because of private ownership in industry, and because of the tremendous number of factors which must be considered by management in the modernizing of industrial plants, no courses of action seem to present themselves. These matters must be left to management. However, the community may be helpful in individual instances by helping firms in a poor competitive position to become informed about other products which might profitably be produced in their plants and in re-orienting their production into more profitable lines. Unless effective action is taken, some of these firms and their payrolls may be lost to Erie. IMPLEMENTATION The Industrial Bureau of the Greater Erie Chamber of Commerce is equipped to assist deteriorating industries to find some new basis on which to build healthier businesses. Vice President, Pennsylvania Electric Company President, Lovell Manufacturing Company Ferrier's Hardware Company; Vice President, Erie County Industrial Development Corporation President, Hays Manufacturing Company President, First National Bank; President, Greater Erie Industrial Development Corporation Sales Manager, Erie Foundry Company Assistant Director, United Steelworkers of America Manager, Industrial Relations, Greater Erie Chamber of Commerce Secretary, American Hollow Boring Company General Manager, Locomotive and Car Equipment Department, General Electric Company Vice President, Skinner Engine Company 153 CASE STUDY AREA NO. B5 POSSIBILITIES OF EXPANDING EXISTING PLANT FACILITIES RESOURCE PERSONS M. M. Devorris Edward C. Doll William F. Ferrier William H. Forster Charles J. Heimberger Russell O. Newton Paul L. Nunes Vice President, Pennsylvania Electric Company President, Lovell Manufacturing Company Ferrier's Hardware Company; Vice President, Erie County Industrial Development Corporation President, Hays Manufacturing Company President, First National Bank; President, Greater Erie Industrial Development Corporation Sales Manager, Erie Foundry Company Assistant Director, United Steelworkers of America W. Andrew Shaner Manager, Industrial Relations, Greater Erie Chamber of Commerce Arthur C. Sheriff Secretary, American Hollow Boring Company; President, Manufacturers Association of Erie Guy W. Wilson General Manager, Locomotive and Car Equipment Department, General Electric Company Thomas L. Yates Vice President, Skinner Engine Company BASIC FACTS AND COMMENTS Many circumstances arise under which expansion of existing plant facilities becomes essential. Some of the problems presented by these circumstances are as follows: One very serious problem is the acquisition of land adjoining an existing plant to provide space for off-street parking and loading or for plant expansion. Sometimes, the land for logical expansion will be zoned residential, and will be in varied ownerships. Experience has proven that in such cases, without eminent domain, an industry may find the necessary acquisition impossible to complete, or possible only at such cost that it is prohibitive. In such cases, the owners frequently decide to sell the present site and buy or build elsewhere, sometimes in another community. Another problem frequently arises with respect to a plant which is abandoned or sold for some other use. Seldom will an abandoned plant exactly suit the requirements of a purchaser. Often, the plant will be divided with different parts being put to different uses. Ordinarily, these uses will be of a lower order than previous uses, and may create problems for the neighborhoods of the community. POSSIBILITIES OF EXPANDING EXISTING PLANT FACILITIES Sometimes, land necessary for the expansion of an existing plant will not be available within the city. This can result in relocating the industry in a suburb or perhaps a distant city and causing a loss of tax revenues to Erie. 155 Case Study Area No. B5 POSSIBILITIES OF EXPANDING EXISTING PLANT FACILITIES Another problem is presented by a number of smaller plants which started in rented quarters and which have now come to a point where the rented facilities are being outgrown and larger quarters are needed. Finding new rental quarters, financing the purchase of an adequate existing plant, or building a new plant, may strain the resources of the management of the small plant. COURSES OF ACTION Frequently, the management of industrial facilities finds itself in a position from which it cannot extricate itself readily by its own efforts. If it is forced to develop its own solutions, it may make decisions and take action which will not be beneficial either to itself or to the community. Such management may need help from both public and private sources. One course of action is to obtain help from the Greater Erie Development Corporation. It is a non-profit organization which, through the sale of Debenture Bonds, has purchased a 225-acre Industrial Park, and developed a 50-acre area with modern conveniences, such as paved streets, storm sewers, sanitary sewers, water, gas, electricity. Three businesses have been moved into the Park. One of them has been assisted with financing under the Pennsylvania Industrial Development Authority program by the Greater Erie Industrial Devel¬ opment Corporation. A fourth company has been assisted in the purchase of the building it is now in, the acquisition of additional land and the building of a 14,200 square foot addition through the G.E.I.D.C. program. The Greater Erie Industrial Development Corporation is, at present, working with five industrial organizations on programs to expand where they are, or to relocate and build new structures. These programs are in various stages of development from the introductory talk¬ ing stage to the working out of final plans after a P.I.DA. loan has received tentative approval. This constitutes a proven course of action of which any industry can take advantage. Another course of action involves the use of urban renewal. In the City of Pittsburgh, this public process was instrumental in saving for the City its largest taxpayer. The company found itself so cramped for space that it either had to find a means of expanding its existing site or move from the City. It could not afford to acquire the land for its own expansion through private negotiation. But it was able to get the necessary land through the instrumenta¬ lity of the Redevelopment Agency of Pittsburgh. In Erie, the Redevelopment Authority of the City of Erie is able to use the same public procedure to assist industry in its expansion. While there may be other courses of action which can be helpful in aiding expansion of plant facilities where that seems necessary in Erie, none has been developed to the point where it presents a clear procedure which should be suggested here. IMPLEMENTATION The Redevelopment Authority of Erie is ready and able to be of service in connection with industrial expansion problems for existing industry requiring the acquisition of adjoining land. The Greater Erie Industrial Development Corporation is ready, and has demonstrated its ability, to help existing industry expand through the construction of new facilities in a new location. CASE STUDY AREA NO. B6 INDUSTRIAL LABOR SUPPLY RE SOURCE PERSONS Owner, Gateway Personnel Service Chief Clerk, U. S. Selective Service Local Board #24 Business Agent, Carpenters' Local #2027 Director of Personnel and Public Relations Black Hills Power and Light Company President, Stewart Company Manager, South Dakota State Employment Service The economic growth and industrial development of any community are related to the type, quality, and quantity of occupational skills, both employed and unemployed, it has and will have. The availability of qualified workers, of workers with related skills who can readily master new skills, and of inexperienced but trainable workers are influencing factors con¬ sidered by industry seeking new locales and by industry contemplating expansion. Studies undertaken by the Rapid City local office of the Employment Security Depart¬ ment provide useful information on both the employed and unemployed worker. Some of the factual information garnered from those studies was utilized in developing the disucssions on the local labor supply. One study, a labor skills survey, provided a detailed breakdown of the skill level of employed workers as of November 15, 1960, together with employer forecasts of their ex¬ pansion plans projected to the years 1963 and 1966. The fact that 1462 of 1540 businesses to whom questionnaires were sent responded makes the findings both comprehensive and meaningful. Mrs. B. P. Baresch Mrs. Frances N. Hornocker Frank D. Millage Harry S. Petersen Francis R. "Bud" Stewart George J. Moravec RAPID CITY'S EMPLOYED WORKERS (As of Nov. 15, 1960) TABLE I Male Female Total Professional & Managerial 2871 1179 4050 Clerical and Sales 1802 2332 4134 Service Occupations 721 1190 1911 Agricultural 30 1 31 Skilled 2227 67 2294 Semi-skilled 1564 155 1719 Unskilled 1064 121 1185 TOTALS 10,279 5,045 15,324 157 Case Study Area No. B6 INDUSTRIAL LABOR SUPPLY TABLE II Additional Workers needed by Rapid City employers by 1963 Male Female Total Professional & Managerial 352 257 609 Clerical & Sales 475 525 1000 Service 184 337 521 Skilled 378 15 393 Semi-skilled 332 44 376 Unskilled 223 30 253 TOTALS 1,944 1,208 3,152 TABLE III Additional Workers needed by Rapid City employers by 1966 Male Female Total Professional & Managerial 681 585 1266 Clerical & Sales 859 1055 1914 Service 212 566 778 Skilled 689 32 721 Semi-skilled 602 104 706 Unskilled 284 46 330 TOTALS 3,327 2,388 5,715 The forecasts, it should be noted, consider only the replacement (brought about by death and retirement) and expansion needs of established businesses. They do not include new jobs created by the influx of new firms that may be attracted to the community in the interim periods. Neither do they consider or reflect the myriad job opportunities derived from turnover, since turnover is but a measure of transfers from one job to another. Not included in any of the tabulations were the many various prime and sub-contractors involved in the Titan Missile Base and other Ellsworth Air Force Base projects. Had they and other base housing construction employers been included, overall employment would have been substantially greater. Furthermore, it should also be pointed out that the survey was taken at an off-season time and does not weigh the effects of seasonal employment which is so prominent a factor in our local economy. Neither did the tabulations include information on domestic or farm workers. The local State Employment Service office also provided information on the composition of the pool of labor available in the Rapid City areas as of December 26, 1961: 158 Case Study Area No. B6 INDUSTRIAL LABOR SUPPLY Available Supply Male Female Total Professional & Managerial 46 17 63 Clerical and Sales 79 280 359 Service Occupations 28 165 193 Skilled 269 10 279 Semi-skilled 275 12 287 Unskilled 287 133 420 TOTALS 984 617 1,601 New jobs created by the industrial growth of the community will serve to attract ex¬ perienced and inexperienced workers as it is axiomatic that people move to where they can make a living. People will come because a metropolitan area such as Rapid City's offers greater job opportunities (both in number and variety), numerous recreational activities and facilities, and an invigorating climate. The proof of the community's ability to attract job seekers was and is being effectively demonstrated on the Titan and Minuteman Missile Base projects currently under way. Here the needs for the professional and technical worker far exceeded the available local supply, yet the needed workers have come from far and wide in response to recruitment efforts. An important source of workers are our schools that each year prepare hundreds of youth for their entry into a field of work. The retention of our youth trained in our school systems is of paramount importance. Too often these young adults, because of inadequate local job opportunities, are of necessity forced to seek to earn a living elsewhere. Educational institutions should continue to be encouraged to provide courses of instruc¬ tion geared toward preparing a youngster for entry into the competitive world of work. Vocational training for the mechanically inclined, business training for those interested in clerical pursuits, and college preparation for those considering professional careers mixed with generous portions of courses of occupations and the preparation of one's self for entry into the labor market are self-evident needs. In the same vein, the employed worker may well consider the use of existing educational facilities. Training as preparation for advancement within a chosen occupation is available in trade, business, extension, adult education, and evening classes. Training should be a con¬ tinuing thing both on the job and as preparation for advancement to become better skilled and of more value to the employer. Military call-ups will in all probability see some increases in the foreseeable future as reservists are released and replaced by new inductees. A continuance or worsening of the cold war situation would see pressures for strengthening the military posture. This develop¬ ment would be most likely to effect a reduction in the supply of young men just recently out of school. Labor force potentials only partially utilized at this time but that would add significantly to the number available are our Indian people and the wives of Air Force personnel stationed at Ellsworth Air Force Base. The designation of Indian reservations as redevelopment areas under the Area Redevelop¬ ment Act signifies that potentially many Indian people will be eligible for training or retraining for employment. Foreseeably this could result in an increase in the skill level of accepted candidates and a need to utilize the skills thus acquired before the skills are lost because of the lack of employment opportunities. 159 Case Study Area No. B6 INDUSTRIAL LABOR SUPPLY Air Force wives frequently move to this area with occupational skills for which there are no outlets available. Community growth and development may possibly be a harbinger of new jobs that could effectively utilize those skills or related ones. Our position as a tourist mecca for thousands of visitors and guests every year provides us with a potential source of available workers second to none in the variety of skills it represents. Many are known to make inquiry concerning employment opportunities with the thought of re¬ maining permanently if suitable gainful work could be secured. The conclusion arrived at by the committee was that the supply of workers except for some select occupations might well meet future demands if active and full use is made of all potential sources of workers. The creation of new jobs within the community merits more serious attention, however. Every encouragement should be given to the development and expansion of existing businesses and the attraction of new industries to the community. The development of our proven and as yet unproven natural resources as those of other areas are depleted, providing new industry with information and incentive conducive to the selection of Rapid City for its scene of operations, and other activities aimed toward creating new jobs need continual and vigorous attention on the part of every Rapid Citian. The creation of new jobs needs to be everyone's business. 160 CASE STUDY AREA NO. B7 WAGE RATES RESOURCE PERSONS M. M. Devorris Vice President, Pennsylvania Electric Company Edward C. Doll President, Lovell Manufacturing Company William F. Ferrier Ferrier's Hardware; Vice President, Erie County Industrial Development Corporation William H. Forster President, Hays Manufacturing Company Charles J. Heimberger President, First National Bank; President, Greater Erie Industrial Development Corporation Russell 0. Newton Sales Manager, Erie Foundry Company Paul L. Nunes Assistant Director, United Steelworkers of America John M. Scarlett Manager, Employee Relations, General Electric Company W. Andrew Shaner Manager, Industrial Relations, Greater Erie Chamber of Commerce Arthur C. Sheriff Secretary, American Hollow Boring Company; President, Manufacturers Association of Erie Bernard J. Williams Manager, Pennsylvania State Employment Service Guy W. Wilson General Manager, Locomotive and Car Equipment Department, General Electric Company Thomas L. Yates Vice President, Skinner Engine Company BASIC FACTS AND COMMENTS The most widely quoted statement, with respect to earnings in Erie, is in the "Labor Market Letter", published by the Pennsylvania State Employment Service. The pertinent Table from that bulletin for June, 1960, is as follows: 161 Case Study Area No. B7 WAGE RATES AVERAGE GROSS EARNINGS AND WORKING TIME OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES ERIE LABOR MARKET AREA (Erie County) Average Weekly Earnings Average Weekly Hours Worked Average Hourly Earnings INDUSTRY June '60 June '59 June '60 June '59 June '60 June '59 ALL MANUFACTURING INDUSTRIES - TOTAL $98.53 $97.94 41.4 41.5 $2.38 $2.36 Durable Good Industries - Total 99.29 97.57 41.2 40.9 2.41 2.39 Furniture and Fixtures 83.58 79.75 42.0 40.9 1.99 1.95 Primary Metals 101.40 109.25 39.0 41.7 2.60 2.62 Fabricated Metal Products 96.18 94.16 42.0 41.3 2.29 2.28 Non-electric Machinery and Transportation Equipment 105.46 105.52 40.1 40.9 2.63 2.58 Electrical Machinery 95.12 93.89 41.0 41.0 2.32 2.29 Other Durable Goods 86.94 84.00 37.7 40.0 2.19 2.10 Non-durable Goods Industries - Total 94.28 98.08 41.9 43.4 2.25 2.26 Food Products 80.00 82.00 39.8 41.0 2.01 2.00 Paper Products, Printing and Publishing 112.01 117.45 44.1 45.7 2.54 2.57 Rubber and Miscellaneous Plastics Products 90.72 92.44 42.0 43.4 2.16 2.13 Other Non-durable Goods 70.09 76.02 38.3 39.8 1.86 1.91 The above figures, by dividing gross payrolls by gross numbers of hours worked, reflect not wage rates but earnings. It is to be understood that these figures are based on earnings of employees in the top industries in the community. Therefore, a more detailed study has been requested to be made under the auspices of the Personnel Association of Northwestern Pennsylvania, in order to secure other in¬ formation on earnings in various types of industry and in various job classifications. The Association has this under consideration at the present time and more informa¬ tion may be available shortly. Such information can be used in discussion with interested industrial prospects. COURSES OF ACTION This analysis is concerned not about the adequacy of wage rates or earnings, but about the extent to which available statistics present an accurate picture of prevailing rates in Erie. The evidence seems to show that presently available figures may be misleading. Additional studies are needed to produce a more accurate picture. The most logical course of action seems to be that of having the Personnel Association of Northwestern Pennsylvania complete the study which it has under consideration. Then, if additional studies are needed, they can be developed. IMPLEMENTATION Every effort should be made to get the study by the Personnel Association completed. 162 CASE STUDY AREA NO. B8 RESOURCES FOR INDUSTRIAL EXPANSION RESOURCE PERSONS M. M. Devorris Edward C. Doll William F. Ferrier William H. Forster Charles J. Heimberger Russell O. Newton Paul L. Nunes Vice President, Pennsylvania Electric Company President, Lovell Manufacturing Company Ferrier's Hardware Company; Vice President, Erie County Industrial Development Corporation President, Hays Manufacturing Company President, First National Bank; President, Greater Erie Industrial Development Corporation Sales Manager, Erie Foundry Company Assistant Director, United Steelworkers of America W. Andrew Shaner Manager, Industrial Relations, Greater Erie Chamber of Commerce Guy W. Wilson General Manager, Locomotive and Car Equipment Department, General Electric Company Thomas L. Yates Vice President, Skinner Engine Company BASIC FACTS AND COMMENTS Expansion of existing local industries and the attraction of new industry involves a number of important physical and financial factors. Included among them are the following: 1. Land. The availability of land for industrial expansion presents no particular problem in Erie. Many suitable sites are now available. Special provision for industry has been made in the Industrial Park, where not only land is available but also every kind of assistance that may be required. The Erie Port Commissioners have land available, and can dredge and fill certain areas to make additional land available along the Bay and Lake fronts to accommodate industries that have heavy water requirements. Other sites are also available. 2. Utilities. Both gas and electricity can be made available in practically unlimited amounts to almost any location, at rates which are competitive. The same holds true for all transportation facilities, including rail, truck and air. 3. Structures. Many structures are in existence in Erie which could be adapted at small cost to meet the needs of expanding or new industries. One new plant is available in the Industrial Park. When completely new facilities may be required and a company is not able to provide its own financing, special assistance can be made available to prevent the loss of such a company to the community. 163 Case Study Area Ne. B8 RESOURCES FOR INDUSTRIAL EXPANSION 4. Financing. While many existing methods of commercial financing are available in the Erie area, they may not be adequate to meet industrial expansion needs which develop. Special devices may be necessary. Both the State of Pennsylvania and the Erie community have taken precautions to be able to handle such situations as they arise. COURSES OF ACTION Probably the most promising course of action available in the Erie area has been de¬ veloped by the Greater Erie Industrial Development Corporation and by similar organizations in Corry, Pennsylvania and in Lake City, Pennsylvania. The two latter communities are also located in Erie County. The Greater Erie Industrial Development Corporation is able to make land, utilities, structures and financing available on favorable terms for the expansion or new location of any desirable industry. The Corporation is able to supply 100% financing in accordance with a program developed by the Pennsylvania Industrial Development Authority. The following steps are involved: 1. The Executive Secretary of the G. E. I. D. C. confers with the prospect considering industrial expansion, roughing out the costs required for land and building and then sitting in with the industry's representative and the bank representative to explain the project and the financing required. 2. One hundred per cent financing means 50% from a public lending institution, usually at 6% interest; 30% from Pennsylvania Industrial Development Authority at 2% interest; 20% from G. E. I. D. C. at 2% interest or furnished by the industrial pros¬ pect. 3. After the details have been worked out on the cost of the project, The Greater Erie Industrial Development Corporation will file an application for a loan from the P. I. D. A. for financing 30% of the project. The proper handling of cost estimates, working out amortization programs, filing of applications and explanations to the prospect may be decisive in the selection or rejection of the Erie area as the place in which to locate. The fact that the Greater Erie Industrial De¬ velopment Corporation has successfully completed four such negotiations indicates that the existing machinery is workable. IMPLEMENTATION The Greater Erie Industrial Development Corporation is prepared to help existing in¬ dustries to expand or new industries to locate in the Erie area on a very attractive non-profit community aid basis. No other mechanism for this purpose seems to be required at this time. 164 CASE STUDY AREA NO. B9 NEED FOR AN ECONOMIC BASE STUDY AS A FOUNDATION ON WHICH TO BUILD A BETTER INDUSTRIAL POSITION RESOURCE PERSONS M. M. Devorris Edward C. Doll William F. Ferrier William H. Forster Charles J. Heimberger Russell O. Newton Paul L. Nunes Vice President, Pennsylvania Electric Company President, Lovell Manufacturing Company Ferrier's Hardware Company; Vice President, Erie County Industrial Development Corporation President, Hays Manufacturing Company President, First National Bank; President, Greater Erie Industrial Development Corporation Sales Manager, Erie Foundry Company Assistant Director, United Steelworkers of America W. Andrew Shaner Manager, Industrial Relations, Greater Erie Chamber of Commerce Arthur C. Sheriff Secretary, American Hollow Boring Company; President, Manufacturers Association of Erie Guy W. Wilson General Manager, Locomotive and Car Equipment Department, General Electric Company Thomas L. Yates Vice President, Skinner Engine Company BASIC FACTS AND COMMENTS A number of surveys of Erie industry have been made in the last few years. None of them could be called a complete economic base study, because none has examined all the major segments of Erie industry in relation to the trends of these and competitive indus¬ tries in the national economy. That is why Erie has no detailed explanation of the fact that the City has been losing ground economically, and has fallen from 53rd position among the major markets of the United States in 1947 to 66th position in 1958. It would appear that, if an economic base study could help to explain what has been happening in Erie, the cost would be fully justified. As an indication of what might be accomplished by such a survey in Erie, a comparison was made between Erie and Pittsburgh. Much of the renaissance of Pittsburgh has been at¬ tributed to an economic base study conducted there. The story of that study is told in the pam¬ phlet, COMMUNITY ANALYSIS — FOUNDATION FOR DECISION MAKING, which is part of the COMMUNITY DEVELOPMENT SERIES. The pertinent quotation from that pamphlet follows: "THE PITTSBURGH STORY The City of Pittsburgh offers one of the best illustrations of how a city can take advan¬ tage of this type of economic base study. In 1945, when leaders of that City became aware that 165 Case Study Area No. B9 NEED FOR AN ECONOMIC BASE STUDY. . . its economic position was being challenged, they initiated a comprehensive analysis of the entire metropolitan area. The study of what happened can be summarized briefly. "Careful study of nationwide trends in the steel industry revealed that Pittsburgh was becoming relatively less important than other centers of steel production. The Great Lakes region and other steel-producing areas were becoming more effective in their competition and were taking away a part of Pittsburgh’s carbon steel business. The study also showed that steel was diminishing in its relative importance to the national economy. Steel products were being replaced by light metals, paper, plastics and other materials. "The research study also showed that future community leadership was being lost be¬ cause younger men and women educated in Pittsburgh's institutions of higher learning were going to other cities to find jobs in which they could make better use of their abilities. "The analysis of housing showed that many mill employees working at plants located both up and down the river were forced to live in slum areas near the center of the City. Downtown workers generally lived in distant suburbs. "Traffic research indicated that downtown and mill workers converged twice each day as they drove from their homes to their jobs and back home again. "The economic analysis showed that all four of these problems were closely interrelated. It made possible the following constructive decisions and action: 1. The production of alloys was added to the existing steel industry. This increased the volume of industrial activity in the Pittsburgh area. The power of eminent domain was used to clear a slum for reuse in the expansion of a steel plant. This action saved the City's largest taxpayer from being forced to relocate in another city. 2. More university graduates found jobs in the new alloy industry which required substantial laboratory work and other high levels of skill. 3. The new alloy steel industry had an effect on housing. It produced more jobs for women. Family size decreased and family incomes increased. The higher incomes made better housing possible. This new housing was located in areas which were planned to fit the needs of both downtown workers and mill workers. Large slum areas were cleared in the process of industrial plant expansion. Other slums were cleared near the central business district. This former slum area was rebuilt with large office buildings and a municipal park. 4. Traffic congestion was relieved by the more appropriate location of new housing develop¬ ments, by the clearance of slum areas which were reused for freeways, by improved ap¬ proaches to the City and by new highways, parkways and bridges. "PHILOSOPHY OF THE ECONOMIC BASE STUDY. . . "To get the same practical value that Pittsburgh derived from its economic base study, each community should begin with the recognition that the community constitutes a unique com¬ bination of assets and liabilities. By learning how to 'accentuate the positive, eliminate the negative', each community can develop its own way of life to take advantage of its particular capabilities. 166 Case Study Area No. B9 NEED FOR AN ECONOMIC BASE STUDY. . . "The assets of any locality consist largely of the imagination, knowledge and skills of its people, the favorable characteristics of its site, and its location with respect to raw materials, transportation, power and markets. In such assets lie the community's potential. "Liabilities are the lack of skills and unfavorable attitudes of the citizens toward their community and toward their employment, the presence of physical obstacles such as a narrow valley location, inadequate water supply, and a location that is too great a distance from raw materials and markets. "The opportunity for growth and development in any locality is largely determined by the adjustment it can make between its assets and liabilities and the economic forces at work around it. Depending on the circumstances, the combination of factors may result in a situa¬ tion which is highly favorable or seriously adverse. Each community should want to know what its potential may be in order to decide the kind of adjustment to make. "Here is an example which may help to show what is involved. Many years ago, the American pulp and paper industry was firmly established in the northeastern states. Spruce trees were its principal source of raw material. Then, it was found that newsprint and kraft paper could be made from the resinous pines of southern states, and that paper could be made from western species. This technological change was enough to allow expansion of the indus¬ try to other regions. "Now, new methods have been developed to use hardwoods economically for paper. Mil¬ lions of dollars have been and are being spent to establish this process in the New England states. Thus, within half a century, a major industry which had practically stopped growing in one region, has expanded into other regions, and has resumed growth in its original setting. No community has been able to control this adjustment. Many communities have been affected by it. "A town in New England has become famous for brass products — especially brass bear¬ ings. Community leaders were not in the least concerned when chemists developed nylon. But they were greatly concerned when it was discovered that nylon could be made into competitive bearings. At that point, the manufacturers in that particular community had to decide whether they wanted to continue as makers of bearings and perhaps begin working with nylon, or to con¬ centrate on the fabrication of brass and give up at least part of the bearing market. Jobs were definitely at stake. "TECHNIQUE OF THE ECONOMIC BASE STUDY "The extent to which a locality can benefit from an economic base study will depend in considerable measure on how the study is organized. While each community must design its study in the light of its particular requirements, certain fundamental relationships must be established if the study is to accomplish its purpose. Among them are the following: 1. RELATIONSHIPS WITHIN THE NATIONAL ECONOMY. The American production process has many important segments including such diverse elements as automotive machinery, textiles, electronic controls and consumers durable goods. One classification of them has been prepared by the Federal Reserve Board and is used regularly in its reports on national production. Naturally, each of these segments of the economy has an effect upon the others. Compari¬ sons among them are an important means of determining trends. 167 Case Study Area No. B9 NEED FOR AN ECONOMIC BASE STUDY... * The economic base study follows the trends with respect to each of these segments to determine what changes are taking place in the relative importance of major parts of the economy. Even where clearly identified trends can be detected, they must be checked constantly because they are subject to change. Every effort should be made to determine the reason for the existence of each signifi¬ cant trend and its probable future behavior. Will the use of timber increase relatively faster than the use of steel? Will the expansion of packaging continue? Why have electronics become so important and what is their future? 2. EXAMINATION OF SPECIFIC SEGMENTS OF THE ECONOMY. Each community will discover that it is particularly interested in only a few of the various segments of the national economy. For each of these segments, a detailed investigation should be made to determine current and probable future demand for contemporary products and the likelihood of developing new ones. Examination in detail can pinpoint the relationships of regions and individual communities to the flow of economic goods. It can suggest that certain regions and cities may be in a more favorable position than others. 3. LOCAL ADAPTATIONS. Here begins the consideration of the human and technological factors which exist, or can be created, in a community and the effect they can have on the production process. This involves a study of the local economy in relation to the national trends. It also involves cross comparisons which can provide insight into the kinds of local adjustments which should be made. A local plant in an industry showing a strong upward national trend may, nevertheless, develop certain cost-production ratios which can create trouble. This could mean that the local industry is headed com¬ pletely counter to the national trend. On the other hand, nationwide industry may be losing out while the local company is so situated that it can continue profitable opera¬ tions for a number of years. "These studies show citizens of a community what the future may be for the big sources of local employment, whether their farms and factories are as efficient as their competi¬ tors nationally, and what new sources of employment can be developed. Citizens can de¬ velop convictions about the probable future size and character of their community." COURSES OF ACTION If the need for such an economic base study in Erie becomes evident, the City will be faced with a difficult problem. There is no way in which it can make such a study with local research facilities. It will have to secure outside help particularly to indicate the economic forces at work throughout the Nation which can have a controlling effect upon Erie. Accumulation of such infor¬ mation for the exclusive use of Erie would be excessively costly. The prudent course of action is to secure the facts from some national organization engaged in the collection of similar infor¬ mation for other purposes. This would lessen the cost of work done for Erie and make possible a basic analysis which might not be able to be financed in any other way. The local adaptation of this national information can be done without too much trouble. An organization such as the Greater Erie Chamber of Commerce could establish a center where the information could be adapted to local use on a continuing basis, and from which individual busi¬ nesses could get help in adapting the facts for their own use. IMPLEMENTATION The development of national information for an economic base study of a single city would cost about $50,000. If six cities could be brought into a cooperative program, the total cost would be increased only to about $60,000 and the cost to each individual city would be reduced to about $10,000. * ► 168 Case Study Area No. B9 NEED FOR AN ECONOMIC BASE STUDY... Before any such study is undertaken in Erie or in any other city, regardless of cost, a real conviction of need must be developed. Once the conviction becomes great enough, the work will be undertaken and the required funds will be provided. In Erie, it is the business community which must make the decision. Industrial leaders must determine the extent to which they are prepared to compete in the markets of the Nation with the factual information they now have. If they decide that they need additional facts, which can be supplied only by an economic base study of the kind outlined here, they must take action either to contribute the required funds or to get some public body such as the City or the County to make the expenditure. 169 <1 CASE STUDY AREA NO. BIO WHAT KIND OF PROMOTION SHOULD BE USED TO IMPROVE INDUSTRIAL POSITION? RESOURCE PERSONS Pat Dixon, Chairman First National Bank of the Black Hills Charles Lien Pete Lien & Sons Larry Owen Rapid City Chamber of Commerce Dick Berry First National Bank of the Black Hills Walter Shoberg American National Bank Frank Millage Central Labor Hall Tom Lane Kluthe & Lane Insurance Joe Cope S. Dak. School of Mines & Technology Dean Nauman Nauman Advertising Agency Norton Lawellin Montana-Dakota Utilities Company Harry Edwards Black Hills Power & Light Company William Carland Chicago-Northwestern Railway Lowell Shuck Chicago-Milwaukee Railway Dick Volkert Chicago-Northwestern Railway Wallace Refke Chicago-Milwaukee Railway Lawrence Jacobson Chicago-Northwestern Railway I. What Type of Industrial Expansion Does Rapid City Seek? Before determing the type of promotion to use, we must first decide the direction in which we are aimed. Our direction, of course, is conditioned by our greatest potential and hope for suc¬ cess. It was generally agreed that the following items offered the greatest possibility to improve our industrial position: 1. Electronics type industry. 2. Research facilities. This is of particular interest in relationship to the already devel¬ oped potential at the School of Mines & Technology. 3. High value, low weight product type industries such as instruments and precision tools. It was pointed out that there is a need for well trained people in the local labor forces to meet these particular needs. A large portion of the present labor force consists of non-technical personnel. 4. Products utilizing natural resources of the area such as: Composition Board plants, in¬ sulation type boards, wood chips and compressed sawdust for fireplaces - all of which could utilize forest waste products. 171 Case Study Area No. BIO INDUSTRIAL PROMOTION The possibility of cosmetics which use refined benetonite as one of their basic ingredients. Sugar-type products such as candy. Wool scouring and woolen mills. Silica sand developments. 5. Produce products that would satisfy local needs in the Rapid City market area. This would involve smaller operations of certain basic commodities or products which could be produced economically for a smaller market area. 6. In terms of financial resources, it was generally agreed that any prospect must be rea¬ sonably self-sufficient from a financing viewpoint. Risk capital is not available through community funds such as Rapid City Industries, Inc., and the availability of funds for building on a lease or lease purchase arrangement requires a reasonably sound finan¬ cial rating. II. What is Now Being Done to Attract Industry and Create Expansion of Present Industry? Through the Chamber of Commerce Industrial Council, the gathering of important statis¬ tics and data is a continuing process. Our statistics have been accepted in the Community Audit program, provided by Conway Publications, Inc., and our figures are certified for basic, essen¬ tial industrial information. Our efforts in finding prospects are basically related to information received through railroad representatives, the IDEA office in Pierre and tips by local business firms dealing with firms in other areas. Any sound contact is followed up through personal visitation in the pros¬ pect's home town and office. The efforts of Rapid City Industries, Inc., are utilized in developing industrial sites and providing potential of lease or lease purchase agreements for buildings. The research facilities of both the School of Mines & Technology and IDEA are utilized in specific proposals on local possibilities. It was suggested that, if possible, a catalogue or index be devel¬ oped of all the available research studies now on file at the School of Mines & Technology. The question of helping local industries was discussed and it was generally agreed that all of the efforts extended for outside prospects were equally available to local operations. No favoritism is sought or offered for outside firms through tax concessions, free land, moving expenses, risk or promotional capital. The general program efforts of the Chamber provide a basic help to general industrial problems for all local industries such as improved transportation facilities, freight rate studies, management courses and general community improvement. It was agreed by those present that the effort outlined above should be continued and strengthened and, wherever possible, expanded with the following suggestions in category III. III. What Additional Steps Can be Taken that are Practical and Effective, That Can be Used to Improve Rapid City's Industrial Position from the Promotion Standpoint? 1. One of the most important efforts appears to be the need to inform our own local people, both in Rapid City and the State, about the advantages of our area. We must also, through a communication program, encourage citizens to be sensitive to opportunities and to represent our area in the best light wherever possible. Possibly, a communica¬ tions bulletin or news release program on a continuing basis might better inform the public of local needs which might be met, along with knowledge of local resources. 2. Revival of a program of several years ago to encourage South Dakota manufacturers to label 172 Case Study Area No. BIO INDUSTRIAL PROMOTION their product with the Mount Rushmore seal was suggested. This would help spread the concept of our area as a potential industrial site, as well as expand markets for locally produced items. A seal that could be used on the packaging of any products, as well as letterheads or envelopes, might be advantageous. 3. We should endeavor to take better advantage of the large tourist traffic to inform and alert them of our interest and available resources for industrial potential. Statements of this type should be encouarged for inclusion on individual tourist attraction brochures and maps. 4. A slide presentation might be developed for local and special prospect presentations. This could be an effective visual aid. 5. The development of a trade school to train persons for more technical skills would be highly desirable in improving our industrial potential position. Junior college develop¬ ments also would add to this important community need. 6. A proposed tour by representatives of correspondent banks of local banking firms might do much toward spreading the word on opportunities that exist in this area. 7. Personal or direct mail contact with South Dakota School of Mines & Technology alumni might also uncover special opportunities. 8. Special promotion and publicity on the availability of local technical and research aids for existing firms might be helpful in working out problems that could lead to expansion for maintaining present job opportunities. No single group or organization has the possibility of bringing about all the conditions which will be required to assure the improvement of Rapid City's competitive industrial posi¬ tion. Cooperative effort on the part of many groups and interests will be required. The Chamber of Commerce can play an important role in initiating and coordinating essential efforts for industrial promotion. 173 CASE STUDY AREA NO. Bll SHOULD THERE BE AN INDUSTRIAL DEVELOPMENT PROGRAM? RESOURCE PERSONS Carol R. Owen Bank of Hallandale Ross E. Amos American Institute of Real Estate Appraisers (retired) David Mears Mear’s Plumbing Ernest Pinto Building Contractor Sidney Kupferberg Moongate Motel BASIC FACTS AND COMMENTS First of all, tourism is now and will probably always be our main industry, representing some 65% of every dollar of income to this area. To invite here any industry that would in any way interfere with the comfort and convenience of the tourist would be suicidal. However, there are many light, clean industries which not only would not interfere with tourism, but would find a ready market here in the tourist accommodations and related service and building industries. It was pointed out that all residents in Hallandale are not in the upper income brackets, many live from week to week and depend on daily employment. Furthermore, if it is desirable to keep our young people in our community, there must be a balanced economy to provide year round employment for them, and to assure the future sound development of Hallandale. It was determined that clean industry, located in a zoned industrial area, would be compatible with our tourist industry. What 100 New Factory Workers Mean to a Community : 296 more people, 112 more households; 51 more school children; 107 more passenger cars registered; 174 more workers in allied and service industries; 4 more retail establishments; $590,000 more personal income per year; $360,000 more retail sales per year; $270,000 more bank deposits. While it is doubtful if there is room in Hallandale for firms employing 100 factory workers, firms em¬ ploying upwards to 50 are considered feasible, and the ratio of benefit to the city would be the same. From the present trend in light industry moving, without advance promotion, into our northwest industrial area, it was concluded that industry will come regardless of effort on our part, and that therefore a minimum program of promotion can be planned. More important effort might be put in the proper zoning and planning, as well as welcoming and servicing indus¬ try when it gets here. COURSES OF ACTION 1. Directional Signs . Two signs could be prepared immediately, pointing out the two areas which are taking on the image of "industrial parks". One sign should be located at North Dixie Highway, pointing across the track, and reading "Industrial Park Area No. 1". Another sign should be at NE Third Street, pointing west, and reading "Industrial Park No. 2". A similar sign might also be located at Beach Boulevard, and either NW 4th, 5th, or 6th Avenues, pointing north. These signs should be small, but neat and attractive in design. 2. Personal contact in Dade County area . Since it has been determined from interviews with companies now moving here from that area that there are many firms interested in moving to Broward County, the Industrial Committee should confine their efforts to personal contact with "leads" in Dade County. If the money is available, a direct mail promotion might be used. 3. Prepare kit of information and statistics . This should be kept up to date at all times, and contain information on sites, utilities, taxes, transportation, labor market, etc. 175 Case Study Area No. Bll SHOULD THERE BE AN INDUSTRIAL DEVELOPMENT PROGRAM? IMPLEMENTATION The three suggested courses of action could easily be handled by the Industrial Committee of the Chamber of Commerce, with a suggested budget of $500 for the first year. It was also suggested that the Industrial Committee include a "welcome" program to new industry. 176 COMMERCIAL DEVELOPMENT CATEGORY C COMMERCIAL DEVELOPMENT SECTION CASE STUDY AREA NO. Cl - CASE STUDY AREA NO. C2 - CASE STUDY AREA NO. C3 - CASE STUDY AREA NO. C4 - CASE STUDY AREA NO. C5 - CASE STUDY AREA NO. C6 - A DEFINITE PATTERN OF COMMERCIAL DEVELOPMENT THE CENTRAL BUSINESS DISTRICT SUBURBAN SHOPPING CENTERS STRIP AND SPOT COMMERCIAL DEVELOPMENT CAN COMMERCIAL FACILITIES BE PROVIDED AS NEEDED? HOW SHOULD COMMERCIAL DEVELOPMENT BE PROMOTED AND CONTROLLED? 177 CASE STUDY AREA NO. Cl A DEFINITE PATTERN OF COMMERCIAL DEVELOPMENT RESOURCE PERSONS Thomas G. Cairns Supervisor, Loblaw's, Inc. F. Earl Colebourne President, First Erie Corporation John J. Fries Vice President, Boston Store Carl J. Kern Manager, C. A. Curtze Company Earl McCutcheon President, Loell Company F. Dana Payne, Jr. Daka Paper Company, Inc. Harold D. Pryde Co-Owner, Faulhaber Furniture Company E. J. Stinneford Manager, W. T. Grant Company; President, Retail-Wholesale-Service Division, Greater Erie Chamber of Commerce Adam P. Szczesny Credit and Advertising Manager, Stanley Brothers Furniture Company, Inc. BASIC FACTS AND COMMENTS Through the years, commercial development in the Erie area has followed changing pat¬ terns. During the early history of the City, most commercial development was downtown. While the downtown area continues to be the dominant center of commercial activity, its relative impor¬ tance has declined. An increasing number of individuals and organizations have moved out of the downtown area because they have found other locations in which they can operate more efficiently. The declining dominance of the downtown area is largely due to the obsolescence of both land uses and structures. The Central Business District has not been adjusted to the automobile as successfully as have the suburban shopping centers. While owners and managers of downtown businesses have attempted to provide easy access and adequate parking, the downtown area con¬ tinues to suffer from land-use problems which are not encountered in other parts of the Erie area. The obsolescence of downtown structures is evidenced by the large number of stores with a width of twenty-five feet or less. Such stores were built many years ago when shelf space was for storage, not for display. These structures are inadequate for modern merchandising where the volume of sales may depend largely upon large floor space on which merchandise can be attrac¬ tively displayed. At the present time, a process of rehabilitation and restoration has been made a definite part of the pattern of development for the Central Business District. Many new improvements have been made. Parking has been improved. New stores designed for the use of the most modern merchandising methods have been built. But ancient structures persist in the midst of modern land uses. As a result, the Central Business District presents a problem of grave proportions which will be considered at length in Case Study Area No. C2. 179 Case Study Area No. Cl A DEFINITE PATTERN OF COMMERCIAL DEVELOPMENT While the Central Business District has been retrogressing, suburban shopping centers have been coming to the fore. One, located beyond the City limits on the west side of the City, has attained major proportions. Another in the northeast has been highly successful. Others have been attempted with different degrees of success. They have brought about a de-centrali- zation of shopping for food products and various other types of merchandise. Part of the Erie pattern which must be a cause of great concern is the practice of spot and strip commercial development along many of the principal streets. This permits commerce to penetrate residential areas, and to interfere with the creation of sound neighborhoods. Whether or not such commercial development is necessary to satisfy the needs of Erie is open to question. Even if needed, its existence is likely to prove excessively costly in terms of community living. Certainly, the existing pattern of commercial development in Erie has not been planned. Surely, it would be quite different if it had been constructed according to comprehensive planning. It will be very different if comprehensive planning is allowed to play a part in future development. This does not mean that the free market system will be changed. VHiat it does mean is that free market forces will function within a pattern of physical location designed to contribute to, rather than interfere with, other kinds of community development. COURSES OF ACTION Erie now has patterns of commercial development which will not readily be changed. However, there are courses of action which can be taken to prevent any accentuation of harmful trends and to establish newer and better patterns . The need for these courses of action would seem to be clear, not only to help revitalize downtown, but also to preserve and protect other parts of the community. Other needed courses of action involve comprehensive planning for the community as a whole and the development of zoning and other controls which will guide commercial development and protect residential areas from commercial intrusion. While these courses of action are im¬ portant to commercial development, their discussion will be reserved for Chapter IX - COMPRE¬ HENSIVE COMMUNITY PLANNING. IMPLEMENTATION While commercial development is, and must remain, largely a function of the free market, guidance and control can be provided by organized community effort. In the development of con¬ trols, the community must be greatly concerned lest it interfere with or prevent the development of commercial activity. Maintaining a proper balance is such a delicate matter that it has to be considered, not in broad general terms, but in specifics. For that reason, the implementation and improvement of patterns of commercial development will be broken down into the specific problems which appear on the pages immediately following. 180 CASE STUDY AREA NO. C2 THE CENTRAL BUSINESS DISTRICT RESOURCE PERSONS Mr. J. Robert Baldwin Chester L. Bukowski Thomas G. Cairns F. Earl Colebourne Amos K. Flint John J. Fries Carl J. Kern Joseph F. Mattis Earl McCutcheon F. Dana Payne, Jr. Harold D. Pryde Arthur E. Reichel Richard W. Ruth E. J. Stinneford Adam P. Szczesny Roy B. Way H. W. Wilbur President, Baldwin Brothers, Inc. City Assessor Supervisor, Loblaw's, Inc. President, First Erie Corporation Amos K. Flint Real Estate Vice President, Boston Store Manager, C. A. Curtze Company Assistant Vice President, First National Bank President, Loell Company Daka Paper Company, Inc. Co-Owner, Faulhaber Furniture Company Mortgage Loan Officer, Security-Peoples Trust Company R. W. Ruth Real Estate Manager, W. T. Grant Company; President, Retail-Wholesale-Service Division, Greater Erie Chamber of Commerce Credit-Advertising Manager, Stanley Brothers Furniture Company, Inc. Way Realty Company Baumbach and Galmish Realtors BASIC FACTS AND COMMENTS The Central Business District is unique in the problem which it presents to the Erie area. Since 1952, and in spite of all the new improvements which have been made in downtown, assessed property values have declined by about $3,000,000. This means that, unless the area can be revitalized, healthy growth and development for the community as a whole will be difficult, if not impossible. This problem is common to many cities, particularly the older ones where many of the structures in the Central Business District are obsolete. These structures were designed for different times and different methods of merchandising. Some of them will not justify improve¬ ment and should be replaced. Cities everywhere are looking for ways to solve such problems. Many expedients — such as more parking, shopping malls and street re-design — have been tried. Some good results have been achieved. But the fundamental problem has not been solved. 181 Case Study Area No. C2 THE CENTRAL BUSINESS DISTRICT The nature of the problem can be understood best, perhaps, by emphasizing a distinc¬ tion which economists have long recognized between land and improvements on the land. The total supply of land in Erie, and in every other city, is constant. Since its supply is fixed, the value is certain to rise as the intensity of its uses increases. This means that land in the Cen¬ tral Business District should be expected to continue increasing in value unless its functions are actually changed and the intensity of its use is decreased. Improvements on the land are in a very different position. They are built for specific purposes. They freeze the land for a particular use. They cannot be changed readily to meet changing conditions. As improvements tend to become obsolete, they lose their value and tend even to lessen the value of the land on which they stand. In theory, the economic forces of the free market can be depended upon to bring about any needed corrections in both land uses and in improvements. Inefficient structures or land use tend to drive down property values, to make the investment of the owner less profitable if not actually unprofitable, and to encourage the sale or improvement of the property so that it can be made, economically, more competitive. This theory has been proven in case after case. But it is not operating fast enough under existing conditions in many central business districts to win the race with obsolescence. In those cities, some more positive action is needed. Barriers to effective action exist not only in structures which remain standing on the land long after their usefulness has ceased, but also in special privileges to the owners of such structures which have been established as a matter of law. Take depreciation as an example. It is a well-recognized principle in business and in accounting. But depreciation allowance can be put to uses in the Central Business District which make it destructive rather than constructive. Depreciation in downtown real estate can be a very different thing than depreciation in industry. In industry, machinery and facilities are being worn out continuously. If the manu¬ facturer does not set aside funds with which to make improvements and replacements, he ceases to be competitive and is forced out of business. Depreciation for him means the setting aside of some of the income from his business in order to make those improvements and replacements required to insure his economic survival. While depreciation in downtown real estate may be used for similar modernization and im¬ provement, there is no comparable economic penalty for failure to improve. Because of its location in a favorable position on the land, a building may be allowed to deteriorate and still produce a considerable income for its owner. In fact, the owner may be able to make more mon¬ ey by charging depreciation on his structure and pocketing the money than by re-investing this depreciation allowance on improvements. This is because the structure may become obsolete for reasons quite apart from maintenance and improvement. Here is how depreciation allowances are exploited by some property owners. They build a highly suitable structure on a piece of land at a cost, for example, of $1 million. They know that such buildings will gradually decrease in value as age sets in. Therefore, they estimate the life of the structure and deduct from the income of the property each year, an amount designed to repay the entire investment before the structure wears out. This deduction is a perfectly proper accounting procedure. Nevertheless, it may result in a situation so profitable to the owner that all economic incentive for improvement or replacement of the structure is destroyed. Once the capital investment of the owner in the building has been completely returned, his only expenses for continued ownership are taxes and some minimum maintenance. His structure may be standing on land so well located that it will continue to produce a considerable income and profit. He can continue to hold and benefit from his property even though it is being operated on a standard which is actually contributing to the further deterioration of the Central Business District. 182 Case Study Area No. C2 THE CENTRAL BUSINESS DISTRICT Many owners of deteriorated but profitable property in the Central Business District of Erie have a positive financial incentive to resist moves made by the community to revitalize downtown. The only money they have left in their property is in the land. The land value is created by the demand of the market, not by any contribution the owner has made to it. So long as growth and improvement is taking place in the community, land values are almost certain to increase. By retaining title to the property, the owner has every prospect of realizing a specu¬ lative profit, even though he refused to cooperate in bringing about any of the improvement. If the owner decided at any time to sell, he has the possibility of two kinds of profit. One consists of the amount he receives from his land over and above the price paid for it. The other consists of whatever he may receive for his depreciated building. In both cases, the total amount of the profit is taxed as capital gains. If the amount is re-invested in real estate within a period of time prescribed by law, he may pay no tax at all. What seems to be happening in Erie at the present time is this: Owners of such properties are insisting that their assessments on both land and buildings should be reduced because of the obsolescence of the Central Business District. If an owner can get his taxes reduced, and if he pursues a policy of minimum maintenance, he may easily be able to make a current annual prof¬ it from the property and continue to hold it as a speculative investment. If the community, or those around him, are determined to upgrade the area and need to acquire his property as part of the improvement process, he can hold out for a price which will reflect both the existing values and part of the values to be created by the total improvement. The very possibility that he may make such profits tends to encourage him to hold his property in its present condition and not to take the lead in any improvement process. If this attitude on the part of the property owners contributes to the deterioration of down¬ town, it also compels recognition that reversal of the present trend will not come quickly or automatically. Some positive action on the part of the leaders in the Central Business District, itself, or of the community, will be required. COURSES OF ACTION There seem to be at least three possibilities of bringing about the revitalization of the Central Business District in Erie. Each of them is significant. Each can be used in conjunction with the others. Together, they may provide the combination of activities necessary to accom¬ plish the improvement which is desired. 1. The private enterprise approach. Few cities, faced with circumstances as unfavorable as those of Erie, have done as much in an effort to revitalize the Central Business Dis¬ trict by private enterprise. The principal vehicle has been the First Erie Corporation. It was organized to help redevelop the Central Business District. As a basis for its activities, this corporation, using figures taken from assessed valua¬ tions, made a comprehensive analysis of Central Business District properties which showed that in more than half of the cases, the value of the land exceeded the value of the structures. This suggested that the loss to be incurred in the purchase and demoli¬ tion of these buildings, in order to make way for new construction, might not be prohibitive. The problem of the corporation was not only that of acquiring property, clearing and erecting new structures, but also that of finding users of the new structures who would pay enough in capital investment or in rents to make the enterprise profitable. For such an undertaking, the existing property owners were not good prospects. New users had to be found who could draw enough customer traffic to the selected site to justify any investment made. 183 Case Study Area No. C2 THE CENTRAL BUSINESS DISTRICT The First Erie Corporation made a careful study to determine the kind of structure which could be built in the Central Business District, and which could create enough new property values to justify its erection. For this purpose, the needs of the entire down¬ town had to be studied and a solution found which would make an essential contribution to the entire area. The corporation determined that parking was the key to its success. Accordingly, a structure was designed to cover an entire block, with stores on the street level, with one major income-producing facility on the second story level and with three levels of parking directly above the stores. A carefully designed traffic pattern was developed to provide maximum benefit to the stores located in the building. A formula then had to be developed for the assembly of all the property in this first block. The principle of mutual cooperation among the property owners was first inves¬ tigated. This involved a plan wherein the property owners would transfer their holdings in the block to a corporation in which each one's share would be determined by the di¬ rect ratio of the value of his individual property to the value of all the properties in the block. The chief objection to this plan developed out of the reluctance or inability of many of the property owners to pass title of their land to the proposed corporation. In several instances, estates were legally prohibited from participating in such a corporation. The First Erie Corporation then proposed to the property owners a device frequently used by real estate developers in the larger cities of the country. It involved a 99-year lease on the land. Continuing to apply the principle of mutual cooperation, property owners were asked to form a corporation which would then lease each individual prop¬ erty for a term of 99 years, — three 33-year leases running consecutively. The land rent would be paid from project income and would be paid to each individual property owner in the proportion of the value of his property to the value of the land in the block. Of the 18 properties involved, two owners voted negatively and one was undecided. Armed with this limited encouragement, the Corporation began to determine: A. the acceptance of the proposed facility by prime tenants, and B. whether the proposed method of assembling and holding the land would be acceptable to financial institutions for mortgage purposes. Spot checking various types of businesses indicated that the availability of parking facil¬ ities overcame objections to the location of the site (which has purposely been estab¬ lished in a particularly blighted block of the main business street) and to rent costs which would be equal to the rents charged in the existing 100% location. A balance sheet showing estimated construction, operating and financing costs, and net income based on a minimum 70% and a profitable 90% occupancy, was then presented to two of the largest insurance companies in the country for consideration as: (1) a principle for renewing the Central Business District as a whole for any city; and (2) the feasibility of financing this single project. The insurance companies, after studying the plan, enthusiastically endorsed the princi¬ ple of the leasehold and cooperation of the property owners in assembling multiple properties. Each company, however, made the following stipulations as a requirement to obtaining funds for construction: 184 Case Study Area No. C2 THE CENTRAL BUSINESS DISTRICT a. Advance commitments for a minimum of 70% occupancy by tenants with good credit ratings and with initial leases of at least 10 years. b. A provision in the lease from the owners of the land to the corporation which would permit the assignment of the lease to the mortgagee for the term of the mortgage. This assignment would in no way jeopardize the title of the property, nor make the land owner liable for the debt. It simply establishes the mortgagee as a prime creditor entitled to first consideration in event of unforeseen difficulties. The Corporation then proceeded to develop a form of lease between owners of land and the Corporation, under which the owners would have two principal assets convertible into cash. One is the property itself, which could be sold at any time, subject to the leasehold. The other asset is the proportionate share of the ownership in the leasehold. The property owners in the initial project have formed their corporation and have re¬ ceived their charter from the State. The Corporation is now engaged in solicitation of tenants for the proposed structure. There remains some question about the extent to which users of new space at high rents will be forthcoming. However, there seems to be no doubt that this private enterprise approach to the revitalization of downtown is one of the most positive and carefully worked out plans that has appeared anywhere. This situation in Erie, with respect to private enterprise redevelopment, is probably typical of what can be found in many central business districts. The real hope for successful private redevelopment in such cities lies in finding users able and willing to make payments which will finance the cost of the improvements. If further proof of the importance of securing advance commitments from users is needed, that proof can be supplied by the Golden Triangle redevelopment in Pittsburgh. That project was completed by the Redevelopment Authority of the City of Pittsburgh, which, under State law, was permitted to use eminent domain. The actual operation of the project, however, was without subsidy and conformed almost completely to the private enterprise formula. The feature which made the Golden Triangle so successful was the securing by the Redevelopment Authority of firm commitments in the form of long-term leases from large users of space. These leases insured the financial success of the redevelopment before it was undertaken. The Redevelopment Authority set up the project on such a basis that all project costs were repaid in full and, in addition, a payment of $50,000 per year will be paid to the Authority for the period of the leases in what amounts to a commission on the rentals secured. So far as Erie is concerned, there continues to be some question that any solely pri¬ vate enterprise formula can be made to work. Positive evidence has not been produced that enough advance commitments can be secured on any project to assure its profit¬ ableness. Indeed, some students of the Erie situation say that the function of the Cen¬ tral Business District has changed and that the volume of its commercial activity must inevitably contract rather than expand. In their view, the only functions which remain for the Central Business District are as follows: A. It is the general shopping center for that part of the population for whom it is convenient. 185 Case Study Area No. C2 THE CENTRAL BUSINESS DISTRICT B. It is the proper location for specialty shops which cater to the special tastes of people throughout the City. C. It should be a center for office buildings. D. It should be the location of a civic center for governmental and cultural activities. If this restricted concept of the function of the Central Business District is accepted, a completely new approach to the redevelopment of downtown must be adopted. Instead of being expanded, property values in the Central Business District must be further contracted. Perhaps the business done downtown will not exceed 40% of the volume of transactions now performed there. If this proves to be true, the size of the area, the property values and the tax collections can be expected to be only about 40% of what they were. This does not mean that every piece of property in the area will have to be depreciated that much. But it does mean that drastic adjustments must be made, and that alternatives to the private enterprise method of redevelopment must be relied upon. 2. The Public Urban Renewal Process A second course of action for the revitalization of the Central Business District is that made possible by the public urban renewal process. Laws have been enacted by Federal and State governments under which a properly accredited local public agency can ac¬ quire properties (by eminent domain if necessary) in a properly selected area, demol¬ ish the structures, install site improvements and then sell the land for use in accordance with a pre-determined plan. If the plan so indicates, this land can be resold to private enterprise. One such project is about to be completed in Erie. Every indication is that the project has been run very efficiently, and that it will accomplish all of its objectives. However, the costs have been very high. The gross project costs are expected to be approxi¬ mately $5.2 million. The net project cost or loss on the project, which has to be paid by public subsidy, amounts to about $3.6 million. This represents a percentage of loss on the entire project of about 70%. Obviously, this kind of urban renewal could not and would not be applied to the entire Central Business District. Under the law, property to be redeveloped must be clearly deteriorated in character. While many structures and perhaps entire blocks in the Central Business District could qualify, many others would not. Consider the situation with which Erie would be faced if one-third of the total area from South Park Row to 14th Street, and from the west side of French Street to the west side of Peach Street, were to be made eligible for renewal. Some of the problems would be as follows: A. Where would the new users be found to buy and redevelop the new land made available? This problem would be similar to that now being faced by the First Erie Corporation. That corporation is now having difficulty securing users for a single square block of the downtown area. B. Where would the money be found with which to subsidize the loss involved in the acquisition of the land? The total assessed value of the land in the area is about $38 million. This is approximately 100% of true value. The areas eligible for renewal should have a value approaching $12 million. Using 70% of the probable 186 Case Study Area No. C2 THE CENTRAL BUSINESS DISTRICT loss ratio, the subsidy required would be in excess of $8 million. To show that this loss ratio is not exceptionally high, facts which have recently become available, can be cited with respect to the first ten redevelopment proj¬ ects undertaken by the City of New York. These facts are set forth in TAX POLICIES AND URBAN RENEWAL IN NEW YORK CITY, a report prepared for the Citizens’ Housing and Planning Council of New York, Inc. They show the following: Gross Project Costs of the Ten Projects. $109,578,621 New Use Value.of the. Land. 25,073,701 Net Project Costs. $ 84,504,920 % of Loss. 77% Part of the explanation for the high percentage of loss in the New York City project lies in the fact that condemnation awards were 155% of true market value for the properties acquired by that method. While such overpayments are not authorized in any of the urban renewal laws, they seem to have been encour¬ aged in the New York situation. They constitute a "windfall" profit to owners of slum properties. If such windfalls were allowed to creep into Erie projects, the entire renewal effort in this City would be discredited. C. How would the benefit of project operations be distributed among non-project properties? Obviously, the benefits of redevelopment extend beyond a project area and enhance the value of adjacent properties. As soon as this becomes ob¬ vious in Erie, pressures from special interests which see the possibility of profits will become intense. Agencies selecting properties for clearance and redevelopment may be put in an impossible position. D. To what extent can and should urban renewal be concentrated in the Central Business District when other areas of the City are deteriorated and in need of renewal? While the plight of the Central Business District is real, it has no monopoly on the need for redevelopment. Other projects, involving additional subsidies, must be awarded on the basis of need to various sectors of the City before all the redevelopment justifiable for downtown can be undertaken. These questions serve to make clear the fact that, while the public redevelopment device can surely benefit the Central Business District, it probably will not be avail¬ able for use to do the entire job. Much renewal must be accomplished by the private enterprise method, which has already been discussed, or by another course of action about to be discussed. 3. The Graded Tax Plan Public Law 299, Pennsylvania 1951, makes provision for any third-class city of Pennsylvania to adopt the Graded Tax Plan. Under this plan, a third-class city can shift any or all of the city tax burden from improvements to the land. The speed with with this can be accomplished is a matter for determination by the City Council. There is no possibility of the use of the Graded Tax Plan by school districts under existing law. 187 Case Study Area No. C2 THE CENTRAL BUSINESS DISTRICT Why is such a plan of possible use in the revitalization of the Central Business Dis¬ trict? The basic reason is that it would reduce the profitableness of maintaining old structures on valuable land and thus stimulate owners to make improvements. The probable effect of the Graded Tax Plan can be suggested by the following figures: At present, the total assessed value of all taxable property in the City of Erie is more than $414 million — $60,800,000 of this is assessed against land; $353,500,000 is assessed against structures. Land, therefore, pays less than 15% of the total taxes. Improvements pay about 85%. What this means is that land pays about $1 of every $7 collected in real estate taxes. If all City taxes were taken off improvements and added to those already assessed against the land, each dollar of land assessment would pay about seven times the City taxes it is now paying. The property owner whose assessment was made up of about 15% land and 85% improvements would continue paying about what he is paying now. The persons whose land is assessed at less than 15% would pay less taxes. Normally, about 2/3 of the people can expect reduction in taxes. Anyone whose land is assessed at more than 15% would pay an increased tax. What would such a system mean if applied to the Central Business District? Assessed taxable value of the downtown area seems to be divided as follows: Land - $13,635,000 or 43% Buildings - $18,360,500 or 53% This means that, on the average, the City taxes paid in the Central Business District would be increased by nearly three times. Actually, those parcels of land with high cost improvements which now pay a heavy tax on buildings might find themselves pay¬ ing less taxes. However, the owners with heavily depreciated structures, which may be assessed at less than the value of the land on which they stand, might find their taxes raised by as much as five times. Many of these owners could no longer afford to carry their properties in their present obsolescent state and would be forced to make im¬ provements. This incentive would be strengthened by the fact that no tax would be im¬ posed on whatever improvements they might make. IMPLEMENTATION The use of any or all of these courses of action can be decided upon only after a careful investigation of how they could be organized, and what their effect might be. The first course of action is primarily a private enterprise undertaking. While under¬ standing and cooperation from City officials would be required, the necessary commitments would be essentially private and would involve as principals: 1. the present owners of properties in an area selected for improvement, 2. builders and developers, and 3. the ultimate users on whom would rest the burden of paying the rents high enough to finance the entire project. The general public would not be involved. The second course of action involves a redevelopment process which is basically public in character. To the extent that it has been used in Erie, the pattern for it has been set by the t 188 Case Study Area No. C2 THE CENTRAL BUSINESS DISTRICT federal program authorized under the Housing Act of 1949, as amended. This pattern will be examined in detail in the chapter on urban renewal. The third alternative would involve the entire community- Any significant change in the system of assessment and taxation, such as the Graded Tax Plan, is so revolutionary that it would probably not be adopted without a referendum. This would mean that citizens of the com¬ munity would have to become familiar with the details of the plan and pass judgment upon them. Nothing less than the complete Citizen Participation Process would be sufficient to prepare the people for such an exercise of discretion. The details of such a participation process have been outlined in the COMMUNITY DEVELOPMENT SERIES of pamphlets and are discussed at length in Case Study Area No. G23 in this volume. Community leaders may find, if they look upon the Graded Tax Plan as a tool for renewal, that this mechanism can effect essential improvements in a community without the costly pro¬ cesses of redevelopment inherent in the federal program. 189 CASE STUDY AREA NO. C3 SUBURBAN SHOPPING CENTERS RESOURCE PERSONS Thomas G. Cairns Supervisor, Loblaw's, Inc. F. Earl Colebourne President, First Erie Corporation John J. Fries Vice President, Boston Store Carl J. Kern Manager, C. A. Curtze Company Earl McCutcheon President, Loell Company F. Dana Payne, Jr. Daka Paper Company, Inc. Harold D. Pryde Co-Owner, Faulhaber Furniture Company E. J. Stinneford Manager, W. T. Grant Company; President, Retail-Wholesale-Service Division, Greater Erie Chamber of Commerce Adam P. Szczesny Credit and Advertising Manager, Stanley Brothers Furniture Company, Inc. BASIC FACTS AND COMMENTS The economic advantage of shopping centers has become so clearly established that they are a permanent and expanding part of commercial development. While shopping centers can never take the place of the Central Business District, they can perform supplementary functions of great importance. In Erie, several different kinds of shopping centers have been established with varying results. The forces of the free market are continuously testing each installation. Only the ones which are well conceived and well managed can hope to be successful. Those established on the assumption that shopping centers are uniformly successful even without advance proof of eco¬ nomic feasibility, are likely to experience financial difficulty. Because the shopping center business is well established, experts are available who can survey an area, suggest the layout of structures and parking, and give a good indication of its commercial potential. Through the use of such experts, the selection of shopping center loca¬ tions and specifications for the center can be made with considerable confidence. While commercial potential will always be an essential element in selecting sites for shopping centers, comprehensive planning considerations may also be important. Increasingly, Erie has to be concerned about the protection of its residential areas from commercial incur¬ sion of any kind. Many existing neighborhoods are now threatened. If neighborhoods in Erie are to be made stable, definite control over commercial development must be provided. COURSES OF ACTION Wherever profitable opportunities appear, commercial facilities will be provided. No community action is required to stimulate the provision of such facilities in Erie. What is needed is some comprehensive planning control over the location of commercial facilities. Properly planned, these facilities can contribute to the creation of property values in Erie and to the strengthening of neighborhoods. Without adequate planning, such commercial developments can be harmful to certain parts of the community. 191 Case Study Area No. C3 SUBURBAN SHOPPING CENTERS IMPLEMENTATION The basis for planning control over development of commercial facilities now exists. Zoning regulations have been developed and are available for use. The fact that they are not enforced in Erie is largely due to a lack of citizen understanding and support. People general¬ ly must be helped to appreciate the place and importance of planning controls and to insist that such controls be established and maintained. Discussion of proper planning and zoning will be contained in Category D (see page 199). 192 CASE STUDY AREA NO. C4 STRIP AND SPOT COMMERCIAL DEVELOPMENT RESOURCE PERSONS Thomas G. Cairns F. Earl Colebourne John J. Fries Carl J. Kern Earl McCutcheon F. Dana Payne, Jr. Harold D. Pryde E. J. Stinneford Adam P. Szczeny Supervisor, Loblaw's, Inc. President, First Erie Corporation Vice President, Boston Store Manager, C. A. Curtze Company President, Loell Company Daka Paper Company, Inc. Co-Owner, Faulhaber Furniture Company Manager, W. T. Grant Company; President, Retail-Wholesale-Service Division, Greater Erie Chamber of Commerce Credit and Advertising Manager, Stanley Brothers Furniture Company, Inc. BASIC FACTS AND COMMENTS Erie has much more land devoted to commercial use than has the average city, as was suggested in Case Study Area No. 1 - LAND. Much of this development has occurred along main streets where commercial activities have been allowed to develop with little or no consideration of its effect on the rest of the City. One result of such development is the intrusion of commercial activity into residential areas in a way which prevents the establishment of sound neighborhoods. This condition can be a serious threat to the development of neighborhood loyalties and to civic pride. It can also have have an adverse effect upon residential land values and on the tax base of the City. COURSES OF ACTION Legally, there is no way to prevent the commercial use of any property once that use has been established. The City can use its police power to eliminate an established commercial use but only for some overriding reason of public health or safety. However, the City has a potent tool which can be brought to bear on strip development and other undesirable commercial operations. That tool is zoning. Zoning is essentially a protective and preventive measure. It can establish limits within which commercial activity can take place. It can set aside whole areas for residential develop¬ ment and decree that no commercial use of land will be permitted in these areas. Such zoning ordinance, if enforced, offers a real protection to residential property owners. But that protection is only as good as the public support which insists upon keeping the zoning inviolate. The moment any variations are granted and commercial incursion is allowed to oc¬ cur, the value of the zoning protection begins to deteriorate. In time, the protection can be completely eroded. IMPLEMENTATION Use of the tool of zoning to help establish public control over commercial development in a community is not to be taken lightly. This power in the hands of a corrupt or vindictive City administration or one controlled by some special interest, can be used to defeat the will of the 193 Case Study Area No. C4 STRIP AND SPOT COMMERCIAL DEVELOPMENT to people, as well as to serve it. Therefore, the use of this tool should be preceded by a definite program of education to make people generally aware of the advantages and to insist that zoning be used only for carefully planned public purposes. This subject will be discussed at greater length in Case Study Area No. D7 which deals exclusively with zoning. ( 194 CASE STUDY AREA NO. C5 CAN COMMERCIAL FACILITIES BE PROVIDED AS NEEDED? RESOURCE PERSONS Thomas G. Cairns Supervisor, Loblaw’s, Inc. F. Earl Colebourne President, First Erie Corporation John J. Fries Vice President, Boston Store Carl J. Kern Manager, C. A. Curtze Company Earl McCutcheon President, Loell Company F. Dana Payne, Jr. Daka Paper Company, Inc. Harold D. Pryde Co-Owner, Faulhaber Furniture Company E. J. Stinneford Manager, W. T. Grant Company; President, Retail-Wholesale-Service Division, Greater Erie Chamber of Commerce Adam P. Szczesny Credit and Advertising Manager, Stanley Brothers Furniture Company, Inc. BASIC FACTS AND COMMENTS The available evidence seems to indicate that as fast as the growth and development of Erie has justified new commercial facilities, they have been provided. There is no reason to doubt that the forces of the free market will continue to operate with equal effectiveness. One of the most convincing demonstrations of the extent to which commercial facilities will be provided as the opportunity arises is offered by Erie’s Redevelopment Project No. 1. That project was located in an area where little new construction had taken place in re¬ cent years. It was close to the Central Business District in which new commerical development was supposed to be difficult, if not impossible. More than thirty-six acres of land were cleared. Commercial use was decided upon for the entire area. When the land was offered for sale, developers were found without difficulty. Most of these new users of the land came from outside Erie. Their coming to the City will produce an estimated $5 million of new construc¬ tion and will create additional property taxes for the city in the amount of $30,000 per year. There are no particular problems of finance. Money for expansion of commercial facili¬ ties in Erie comes from both local and national sources. The amounts of money available from such sources is said to be more than adequate. COURSES OF ACTION This situation seems to be so completely in hand that nothing further needs to be done to stimulate commercial construction. 195 CASE STUDY AREA NO. C6 HOW SHOULD COMMERCIAL DEVELOPMENT BE PROMOTED AND CONTROLLED? RESOURCE PERSONS Thomas G. Cairns Supervisor, Loblaw's, Inc. F. Earl Colebourne President, First Erie Corporation John J. Fries Vice President, Boston Store Carl J. Kern Manager, C. A. Curtze Company Earl McCutcheon President, Loell Company F. Dana Payne, Jr. Daka Paper Company, Inc. Harold D. Pryde Co-Owner, Faulhaber Furniture Company E. J. Stinneford Manager, W. T. Grant Company; President, Retail-Wholesale-Service Division, Greater Erie Chamber of Commerce Adam P. Szczesny Credit and Advertising Manager, Stanley Brothers Furniture Company, Inc. BASIC FACTS AND COMMENTS With the clearly indicated excess of commercial facilities which exist in Erie, there is no need or excuse for any efforts at further promotion except as discussed in Case Study Area No. C2 - THE CENTRAL BUSINESS DISTRICT. Of course, there will be additional development from time to time in selected places and where clear economic reasons exist. But further in¬ discriminate development can take place only at public risk. Finance can be largely controlling over the provision of additional facilities. Commer¬ cial banks and mortgage lending agencies will insist upon demonstrations of feasibility before funds are made available for additional construction. Restrictions on commercial development as a matter of public policy will be more dif¬ ficult to administer. Zoning can be used as a tool for this purpose. So can public opinion. But these forces must be carefully organized and used if they are to achieve a real public purpose. COURSES OF ACTION No action need to be taken with respect to the forces of the free market. Zoning is so important as a means of control over commercial development that it will be given separate consideration in Case Study Area No. D7. Public opinion has to do largely with the voluntary action of the people in their neighbor¬ hoods. If the people patronize commercial establishments which intrude into their neighborhoods, such institutions will be perpetuated. If, on the other hand, the people of any neighborhood or¬ ganize themselves to withdraw patronage from commercial installations which should be elimi¬ nated, the probabilities are that such uses of land will be brought to a halt. IMPLEMENTATION Only those courses of action which involve some kind of public control will need to be im¬ plemented. Some form of group organization is almost certain to be required to insure either adequate zoning or effective neighborhood control. An ultimate form which this action might have to take is discussed at length in Case Study Area No. G23. 197 COMPREHENSIVE PLANNING CATEGORY D COMPREHENSIVE PLANNING SECTION INTRODUCTION CASE STUDY AREA NO. D1 CASE STUDY AREA NO. D2 CASE STUDY AREA NO. D3 CASE STUDY AREA NO. D4 CASE STUDY AREA NO. D5 CASE STUDY AREA NO. D6 CASE STUDY AREA NO. D7 CASE STUDY AREA NO. D8 CASE STUDY AREA NO. D9 CASE STUDY AREA NO. DIO CASE STUDY AREA NO. Dll WHAT PLANNING IS REQUIRED TO INSURE SOUND AND ORDERLY GROWTH HOW ADEQUATE IS THE EXISTING PLANNING MECHANISM FOR OUR AREA? HOW ADEQUATE IS THE LAND-USE PLAN? HOW ADEQUATE IS THE TRANSPORTATION PLAN? HOW ADEQUATE IS PLANNING FOR COMMUNITY FACILITIES? THE PUBLIC IMPROVEMENTS PROGRAM ZONING REGULATIONS SUBDIVISION REGULATIONS NEIGHBORHOOD ANALYSES PLANNING FOR TRAFFIC CONTROL THE THREAT OF SLUMS AND BLIGHT 199 INTRODUCTION Regardless of the natural resources and geographic advantages with which a commu¬ nity may be endowed, its full potential will only be achieved through determined and creative effort on the part of its citizens. City after city has had to learn this the hard way. The coal towns of Pennsylvania and West Virginia assumed that abundant natural resources would insure their continuing growth and development. Other communities, such as the textile mill towns of New England, assumed that because they were the sites of large industrial operations, they were immune to obsoles¬ cence and to technological change. Only after they found themselves in serious economic dif¬ ficulty did they begin to understand how much was required for balanced growth and develop¬ ment. Other cities, much less richly endowed, have made themselves successful in spite of obvious handicaps. They have taken advantage of every resource in their possession. They have proven not only that organized community effort can reach far beyond the scope of gov¬ ernment, but also that such effort can contribute greatly to community development. Many persons have not yet acquired an understanding of how much can be accomplished by organized community effort or of ways in which that effort can be mobilized short of action by the local government. These persons are aware that many resources exist which can be mobilized. What they now need are positive patterns for both organizing effective action and enlisting the enthusiastic support of large numbers of their fellow citizens to help make their community a fine place in which to live and work. How to form patterns of planning which can be useful in the development of needed courses of action will be discussed in the case study areas found in Category D. 201 * CASE STUDY AREA NO. D1 WHAT PLANNING IS REQUIRED TO ENSURE SOUND AND ORDERLY GROWTH RESOURCE PERSONS Fischer Black Franklin O. Adams William N. Downs Paul Funderburk George S. Jenkins Matt M. Jetton Executive Vice President Tampa Electric Company Architect Chairman, Master Plan Coordinating Committee, Greater Tampa Chamber of Commerce Chairman, City-County Planning Commission Member, City-County Planning Commission; J. E. Greiner Company Member, City-County Planning Commission Martin H. Smith, Jr. Executive Director, City-County Planning Commission Milo M. Smith President, Milo Smith & Associates (City Planners) BASIC FACTS AND COMMENTS The proper growth and development of the Tampa area can be accomplished if there exists within the area a comprehensive community plan, officially adopted, to serve as the framework and guide for the future of the entire area. This plan of development must include all of the following studies, each undertaken and completed in an orderly fashion as part of an established planning program. As will be pointed out, substantial progress has been made already in connection with certain phases of the planning program wherein studies are underway. This includes the prep¬ aration of necessary base maps, the survey and analysis of existing land uses, a comprehensive study of the economic base, a preliminary land use plan and major thoroughfare plan, and ini¬ tial public information program. These studies, which should be completed by the end of 1961, will provide a firm basis for carrying out other essential planning studies. 1. Analysis of Existing Land Use . Proposed future patterns of land use, to be realistic and capable of being carried out, must be preceded by a thorough analysis of the existing land use pattern. This analysis should include a survey as to the type of land use on each land parcel throughout the Tampa area, the tabulation and analysis of all land use types and the mapping of the existing land use patterns. Status : In process. Survey of existing uses complete and data is being transferred to IBM cards for analysis. Final analysis in published form will be available by the end of 1961. 2. Economic Base Studies and Projections . This study should include a survey and anal¬ ysis of all the significant economic data relative to the past, present, and potential future growth and development within the Tampa area. Included as a part of this study are population projections, by five year intervals, extending for some twenty years 203 Case Study Area No. D1 SOUND AND ORDERLY GROWTH into the future. This study and the Land Use Survey and Analysis form the basis for many of the research studies which are to be used in the preparation of an over-all Plan of Development. Status : In process. Three phase study; research, economic projections, and policy implication. The research phase is complete and other economic projections par¬ tially complete. The last stage will be complete in late August. The entire report will be available in published form by the end of 1961. 3. Land Use Plan . The Land Use Plan represents a blueprint for the sound and orderly development of the community over an extended period of time. It sets forth the gen¬ eral location and extent of all future residential, commercial, industrial, agricultural, public and semi-public land uses. This plan should be used as a basis for all public improvements and as a basis for all zoning ordinance preparation and subdivision re¬ view. Private business and citizens can, and should, use this study in the formulation of their own plans for the future. The plan must remain flexible and must be periodi¬ cally adjusted to accommodate new conditions. However, there should be no changes without sound reasons for doing so. Status : In process. Initial studies, which include an analysis of individual planning reports prepared by other agencies that influence local development patterns, now underway and a preliminary plan in published form will be available by the end of 1961. 4. Major Thoroughfare Plan. This plan will provide the means for the efficient, safe and swift movement of both people and goods throughout the Tampa area. It must be closely coordinated with the Land Use Plan. The Major Thoroughfare Plan will con¬ tain a classification of all roads and highways in accordance with a specific function each is to play. This includes expressways, major and secondary arterials, business streets, collector streets, and minor residential streets. Status: In process. Initial studies include an analysis of all projects under considera¬ tion by local governments, State Highway Department and the Federal Bureau of Public Roads. 5. Detailed Planning Studies for Neighborhoods and Community Areas. Completion and adoption of the Land Use Plan necessitates detailed planning studies for individual neighborhood and community areas, for unincorporated population centers, and for the several incorporated areas. Such Studies should contain recommendations for needed community facilities, public parks, and other open spaces. It also should contain the needed revisions in existing street patterns. Status : Future study. Part of the research has been completed by a planning con¬ sultant. 6. Community Facilities Plan . This plan enables the individual governmental agencies to coordinate their building program in a manner that will ensure the maximum com¬ munity benefit through the future years. It coordinates the planning for such public functions as schools, playgrounds, police and fire stations, health and community centers, libraries, and other public facilities. Based upon the Land Use Plan, the Community Facilities Plan sets forth in a comprehensive form the extent and need for all the above-mentioned facilities and their general locations. This plan includes both the facilities which now exist and will continue in use and those which must be added in order to adequately serve the future population. 204 Case Study Area No. D1 SOUND AND ORDERLY GROWTH Status : Future study, not presently scheduled. 7. Capital Improvement Program . This program, based on the Land Use Plan and the Community Facilities Plan, will set forth in a systematic way the capital improve¬ ment needs of the community over a given period of time. This program arranges all capital improvement needs in priority order and indicates which improvements should be constructed within each year of the program. The planning and construc¬ tion of the capital improvement, with the estimated cost, is set forth along with the approximate total cost for each year of the program. Long-range programming of this type enables the individual governing bodies within the Tampa area to adopt methods of financing which may mean considerable savings to the taxpayers. Status : Future project. An initial study, covering the City of Tampa, has been com¬ pleted by a planning consultant. 8. Delineation of Blighted Areas in Need of Renewal Action . This study is an analysis of existing land uses and detailed planning studies for the individual neighborhood and community areas. It will delineate those areas which are found to be in various stages of blight. The type of corrective action (conservation, rehabilitation, or complete clearance) will be recommended. A priority system for areas requiring complete clearance or renewal will be established. Within the City of Tampa, this study will substantially assist in the selection of future projects by the Tampa Urban Renewal Agency. Status: Future project, not presently scheduled. 9. A Development Plan for the Central Business District and Other Major Commercial Centers . This study provides a specific development plan for the central business district and other major commercial centers. It will include such elements as an internal traffic circulation system properly related to the expressway system and other major external streets and roads; a system of terminal parking facilities, pedestrian walkways, terminals for public transit; proposals for the rehabilitation or replacement of blighted structures; and proposals for improving the appearances of streets and store fronts. Status : A detailed economic base study of the Central Business District is now being completed under sponsorship of the Greater Tampa Chamber of Commerce and the Merchants Association. This research comprises a major step toward the revitaliza¬ tion of the Central Business District and will be of substantial value in the over-all downtown area development plan. 10. Uniform Zoning Regulations . This study comprises a complete analysis of existing zoning regulations and the development of such revised regulations as are necessary, based upon the Land Use Plan. A relationship to such a plan is a fundamental require¬ ment of all zoning ordinances. It is ironic that neither the Tampa nor Hillsborough County Zoning Ordinances have been related to a comprehensive plan. Changes have been made both by ordinances and by variance without due regard to the effect on the over-all community welfare. A study of zoning regulations should produce not only suggested revisions in the zoning regulations and zoning map, but also include needed revisions to the administrative process. Status : Future project, not presently scheduled. 205 Case Study Area No. D1 SOUND AND ORDERLY GROWTH 11. Subdivision Regulations . Most important in a growing area such as the Tampa urban area is a planning study of subdivision regulations. This study will produce a set of uniform subdivision regulations and procedures for use in reviewing subdivision pro¬ posals. The subdivision of land is the principal means by which all lands are developed for urban use. It is during the subdivision process, therefore, that land use patterns are established which will coordinate that area with surrounding areas in a proper manner, or establish patterns which will plague the community for years to come! Neither the City of Tampa nor Hillsborough County have an official set of subdivision regulations. Such regulations are mandatory to the proper implementation of a comprehensive land program. Status : Future project, not presently scheduled. 12. Development of Planning Research Program . There exists within the community a continuing need for research data concerning the Tampa area, its physical develop¬ ment, and its population. The Planning Commission is a most appropriate local agency to collect such data, analyze it, and prepare it in a form suitable for use by all public agencies, business and civic leaders, and the general public. Status: Continually in process. Includes compilation and mapping of 1960 census data. 13. Development of Public Information Program . A basic part of any planning program is the need to fully inform the general public, governing bodies, and other public agencies concerning the over-all program and the individual planning proposals as they are developed. An effective public information program will provide the un¬ derstanding of community development problems and their solution as well as per¬ mitting the maximum degree of citizen participation in the planning process. Status : The outline for a long range and continuing program is being prepared. COURSES OF ACTION Programming of the planning studies in proper sequence should proceed as rapidly as possible. A minimum time period of five years is required for the completion of all the plan¬ ning studies enumerated. This time period, of course, depends on the planning budget allotted and the level of qualified professional staff which may be maintained. Some of the programs can only be carried on by the Planning Commission. Others can be contracted for from consulting firms. Both methods are being used. The method that can produce the fastest, most accurate and economical report should continue to be selected. IMPLEMENTATION The Planning Commission is the official agency charged with the responsibility of carry¬ ing out the planning program. The Commission should maintain a work program of essential planning studies consistent with the size of its budget and staff. If satisfactory progress is to be made, however, it is imperative that active support be given at the time when the annual budget is submitted to the governing officials in order to ensure adequate funds to carry out the entire program as rapidly as possible. Speed is essential, due to the rapid growth of the community. 206 CASE STUDY AREA NO. D2 "HOW ADEQUATE IS THE EXISTING PLANNING MECHANISM FOR OUR AREA?" RESOURCE PERSONS Senior Vice President - Treasurer, Black Hills Power & Light Company - City Planning Commission Member Agent, New York Life Insurance Co. - City Planning Commission Member Marshall Flying Service - Chairman City Planning Commission Assistant City Engineer Chairman, Pennington County Commissioners In evaluating the adequacy of the existing planning mechanism, it is important that the concept of city planning and the functions of a planning agency be thoroughly understood. City planning may be defined as intelligent forethought applied to the development of the community. It has a great deal to offer in providing a vehicle for evaluating the problems and pointing out the directions for sound growth and development, based upon the physical charac¬ teristics and changing economic and social requirements of the community. It is a continuous process of supplying to local government and private enterprise, advice based upon a long range plan to guide future development. Its ultimate aim is to provide the best utilization of land to meet all community needs. This produces a second important result. . .maintenance and protection of property values. This can be done through the development and maintenance of a comprehensive master plan for the municipality. PRESENT PLANNING The only planning agency in the area is the Rapid City Planning Commission. There is no planning agency for the country. The Rapid City Planning Commission is presently com¬ posed of 11 members appointed by the Mayor. Terms are staggered and appointments are made yearly for a term of three years. The Commission is advisory only, and has no authority or responsibility for taking action with respect to its findings and recommendations. Members serve without salary and pay their own expenses. The City does not provide a budget for the Commission, and there is no paid staff. One representative of the City Engineering Department is appointed by the Mayor to act as secre¬ tary. The secretarial duties are part-time only, and time is not allowed for duties as a plan¬ ning engineer. Although some work has been done on long range planning, the Commission's time is so taken up with zoning matters, plat approvals, vacations and annexations, etc., that very little has been done toward developing a comprehensive plan for the City. GQDWARD REPORT The "Godward Report" is a comprehensive plan for Rapid City, developed in 1949, by Mr. A. C. Godward, a consulting engineer of Minneapolis, Minnesota. Because of a break in continuity in planning commissions and a lack of a qualified staff, the report has never been implemented or kept up to date. Since the population of Rapid City now nearly equals the God¬ ward prediction for the year 2,000, most specific recommendations contained in the report are outdated or obsolete. Fortunately, certain basic principles still apply and since the report is the only guide now available, its use would be very valuable in the development of any future plans. Harold Norman, Chairman Paul Hammerquist Harry Marshall Douglas Van Eykelbosch Harry Johnson 207 Case Study Area No. D2 ADEQUACY OF PLANNING STATE ENABLING ACT In February of 1949, the State of South Dakota passed enabling legislation authorizing the adoption of a master city plan; an act entitled, An Act authorizing municipalities to organize and create a plan commission, and providing such plan commission with the func¬ tion and duty of making and adopting a master city plan; Providing for a legal status to be given to such master city plan; Providing for building line regulations along major streets; Providing for the regulation of the subdivision of lands within municipalities and three miles thereof, and Providing penalties for the violation of subdivision regulations. This is the act which authorizes the establishment of what is generally referred to as a statutory planning commission. The act provides that any municipality in the State of South Dakota is authorized and empowered to cause to be submitted to the electors of such municipality at any general elec¬ tion or any special election called for such purpose the question of whether or not the munici¬ pality shall be authorized to create a Plan Commission. If a majority of electors voting upon such question shall vote in favor thereof, then such municipality may create by ordinance such a Plan Commission. Briefly, the Statutory Planning Commission Act provides for a commission of not less than five members appointed by the Mayor and confirmed by the City Council. Terms are for two years and appointments are made so that there will be overlapping tenures. The commission may appoint such employees as it may deem necessary and may con¬ tract for other engineers or consultants for such services as the commission may require. The expenditures of the commission must be within the amounts appropriated by the City Council which shall provide the funds, equipment and accommodations necessary for the com¬ mission's work. The duties of the commission include the making and adoption of a master plan for the municipality and all of the duties of a zoning commission. It has platting jurisdiction and authority for subdivision regulations subject to the approval of the City Council, provided, however, that disapproval of the commission's recommendations requires a vote of not less than two-thirds of the entire council membership. BENEFITS OF A STATUTORY PLANNING COMMISSION Benefits which could be expected to accrue if a statutory planning commission were to be established, would first be the adoption of a Master City Plan to be used as a guide in all future planning. The importance of having a Master Plan which has been officially adopted by the plan¬ ning commission and City Council and published in a form that is readily available cannot be over¬ emphasized. In this way, the businessman and the average citizen both gain a better understand¬ ing of his community and the need of adequate planning for good public land use. The existence of a Master Plan provides an effective tool for use of the governing bodies in resisting special interest groups that press for exceptions which are not in keeping with the best interest of the total community. A full-time planning engineer and staff could maintain the Master Plan, make needed engi¬ neering studies, investigate plats and subdivisions and requests for vacations and annexations. This would allow the members of the commission to spend more time on long range studies. * 208 Case Study Area No. D2 ADEQUACY OF PLANNING The commission's control and authority over the three-mile area surrounding the city, although limited to platting and subdivision regulations, would tend to protect property values and allow for orderly development. There are many Urban Renewal plans for cities which provide for financing through Federal Agencies. Should the City wish to take advantage of and/or enter into contracts for such aid, a statutory planning commission is a necessity. COMMENTS The present Planning Commission could be more effective if a full-time planning engi¬ neer and technical staff were provided. It should be understood that adequate planning is going to cost money under any plan, remembering that the savings which can accrue to the community through sound planning will more than offset the original investment. It should also be kept in mind that planning can only be effective if there is understanding and cooperation by the City Council in implementing the findings and recommendations of the Commission. IMPLEMENTATION It appears that the most logical and reasonable course of action for Rapid City would be to authorize a statutory Plan Commission. Definite steps must be taken before comprehensive planning can become a reality. The City Council should cause the question to be submitted to the electors at the next general election. Prior to election time, use must be made of all news media in a planned program of citizen education, to the end that every voter be aware of the shortcomings of our present planning and the benefits to be derived from the new. Community groups and service clubs can help build an understanding among their members of the value of comprehensive planning. It is essential that there be citizen participation in and support of the planning program if it is to be favorably supported at the polls and made effective in action. Now that rural zoning has been initiated and is functioning in two counties in the West River District, Meade and Pennington, we can anticipate more activity in all levels of govern¬ ment, as far as zoning and land planning are concerned. In the near future, Rapid City proper and the outlying metropolitan area will impose upon both the City and the County a growth problem. In order to adequately handle this problem, it will be necessary for both governing agencies to develop a more adequate method of land planning, in order to properly control this growth. Although the problem is existing now, it will in the very near future become a necessity for the County to ask for proper legislation from the State Government to make available to them State laws which will grant them the right and give them the necessary powers to establish either a County or Regional Land Planning Commission. Only through this type of legislation will cities, as well as counties, be able to cope with their expanding boundaries and urban and suburban area developments. 209 t CASE STUDY AREA NO. D3 HOW ADEQUATE IS THE LAND-USE PLAN? RESOURCE PERSONS Merle F. Babbitt William A. Brennan George Bretz Donald Eaton Fred W. Lamberton Daniel W. Miller Leonard Nowak Lee M. Smith Matthew Stegner Chairman, Erie County Planning Commission Architect, Brennan and Brennan Supervisor, Harborcreek Township Supervisor, Fairview Township Chairman, Erie County Commissioners Chairman, Erie City Planning Commission Director, Erie City Planning Commission Member, Erie County Planning Commission Director, Erie County Planning Commission BASIC FACTS AND COMMENTS Erie now has land-use plans which have been developed for both the City and the Courty. Each of these plans involves maps which show in detail the uses to which land is now being put, and uses to which the land might more advantageously be put. The absolute necessity for this kind of information and advice was suggested in Case Study Area No. A1 of this workbook. Forces are at work in the community which create a scarcity of land for almost every community purpose. Land which can be made available for each of these purposes must, therefore, be used with the utmost efficiency in order to be of maximum benefit to the community. At the present time, much of this land is not being used to maximum benefit. What practical contribution can the process of comprehensive planning make to this im¬ provement? It cannot act with authority or responsibility to compel any changes. The planning machinery cannot be used to take land from present owners. It cannot compel owners to give up present uses or to initiate new uses which the planners might recommend. What the persons who operate the planning machinery can do is to accumulate evidence which, when publicly understood, will become persuasive. If a planning commission can gather informa¬ tion showing that, in a particular neighborhood, mixed uses are being permitted which tend to de¬ press residential property values, or to make the neighborhood a less desirable place in which to live, some action is likely to result in time. Individual owners may move to protect or to increase their property values. The local gov¬ ernment may bring action to compel improvement. How does the comprehensive planning process provide the evidence in which changes in land uses can be brought about? To a large extent, the planning group must be guided by what is happen¬ ing to the real estate market. The planning staff accumulates information about the operation of free market forces and makes comparisons in market trends over considerable periods of time. The analysis of the information shows the effect on specific properties and changes in use which might be made to create maximum values and to enable owners to derive maximum benefits from their real estate. The role for planners should not be to sit in an ivory tower and draw idealistic concepts of land-use patterns which have no merit except that they are aesthetically pleasing. Planners must be concerned with specific real estate situations and determine uses which are not only creative 211 Case Study Area No. D3 HOW ADEQUATE IS THE LAND-USE PLAN? and desirable, but also practical and feasible. They must have a working relationship with realtors and the owners of large amounts of city property which enables them to affect the thinking of the practical operators. They must make planning a part of a comprehensive effort of the entire community to improve its lot. Comprehensive planning involves, in addition to land-use planning, the planning for trans¬ portation, for community facilities and for selected public improvements. The land-use plans must be developed in close coordination with these other types of planning. As each type of planning is advanced, it will help improve the other plans. Each will affect the others and in turn be affected by them. COURSES OF ACTION Many constructive courses of action can be taken with respect to land-use planning. Among them are the following: Action to be Taken by Planning Commissions 1. Continuously up-date land-use maps to reflect changes in actual land use. 2. Intensify studies by technicians to determine desirable changes and improvements in proposed land-use plans. These studies should be based on market trends and public policy determinations. 3. Make available the results of land-use studies as a guide for both public and private uses of land. The most important public uses of the land-use studies will be for zoning, subdivision control, location of public and community facilities and for revising assessment policies. The most important private uses of the studies in¬ clude: protection for investors with respect to the kinds and capacities of structures to be built in various parts of the City, indications of promising land areas for pro¬ fitable development and long-term forecasts of the integrity and stability of areas in which development is being considered. Action to Be Taken by Those Responsible for Formulating Public Policy A surprisingly large percentage of decisions made by public officials affect property values and land use — sometimes in limited areas and sometimes on a very large scale. Be¬ fore these decisions are made final, both the public officials and people generally should be made aware of the effects of the decisions on both land use and land values. While such infor¬ mation will be completely advisory, it will provide a test of the extent to which public officials are serving either the best interests of the community as a whole or special interests. Action to Be Taken by Those With Property Investments In some parts of Erie, and notably in the Central Business District, the forces of the free market are tending to depreciate property values. To some extent, this may be the result of forces of change over which control cannot be exercised. To some extent, careful land-use planning and concerted action on the part of property owners can lessen the impact of this change and perhaps prevent such a deterioration of values. The goal should be an actual and continuing enhancement of these values. The greatest possible protection to property owners against loss from obsolesence in old and built-up portions of the City is a program of land-use planning. This offers the one way to find patterns of use which will preserve values in the face of change. It is a course of action of direct self-interest to property owners. * 212 Case Study Area No. D3 HOW ADEQUATE IS THE LAND-USE PLAN? IMPLEMENTATION Implementation of land-use planning must be largely a matter of education. The planning commissions can continue to make improvements in existing land-use plans and to demonstrate the practical worth of their information about land-use trends and property values. The planning commissions should not insist that any control over land uses be put in their hands. Property owners and citizens generally must take the constructive action for implemen¬ tation of land-use plans. Citizens groups must insist that all pertinent information in the hands of the planners should be made available when land-use problems involving the public interest are under discussion. The groups must make clear to public officials that continuation in office will depend on the extent to which they follow sound planning in their policy decisions. 213 CASE STUDY AREA NO. D4 HOW ADEQUATE IS THE TRANSPORTATION PLAN? RESOURCE PERSONS Merle F. Babbitt William A. Brennan George Bretz Donald Eaton Fred W. Lamberton Daniel W. Miller Leonard Nowak Lee M. Smith Matthew Stegner BASIC FACTS AND COMMENTS Transportation planning in the Erie area presents a somewhat confusing picture. The City has a transportation plan. The County is in the process of formulating such a plan. Pri¬ vate and public agencies are doing their own planning with respect to phases of transportation in which they have an investment, or with which they are directly concerned. A complete plan — according to the pamphlet, COMPREHENSIVE PLANNING — GUIDE FOR COMMUNITY GROWTH AND CHANGE, which is part of the COMMUNITY DEVELOPMENT SERIES, should cover all phases of the transportation of persons and goods in relation to what the community has and what it needs. Erie is concerned with practically every kind of trans¬ portation which exists. Many aspects of its transportation problem has been discussed pre¬ viously in connection with advantages of location and natural resources. These problems should be given further consideration here as part of the comprehensive planning process. The aspect of transportation planning which receives most citizens attention and which presents the greatest number of complications is the pattern of streets and highways serving the Erie area. People are well aware of the need for planning to determine where new streets should be built, the capacity of traffic for which old streets should be widened or improved and how traffic should be routed for maximum safety and efficiency. Because transportation conditions are subject to continuous change, transportation plan¬ ning must be done on a continuing basis. Each step taken toward improvement of the transpor¬ tation plan makes other improvements easier to achieve. COURSES OF ACTION In the discussion of port facilities, railroads, air transportation and truck transportation contained in previous case studies, courses of action appropriate to each were proposed. How¬ ever, none was considered in relation to the load it places on streets and highways. Compre¬ hensive transportation planning must take such factors into account. Shortcomings in street and highway planning can be traced to a variety of causes. These include: the unavailability of electronic recording and processing equipment which will gather current information about the volume of traffic, its origin and destination, and special bottle¬ necks currently being created at periods of peak traffic; overlapping jurisdictions of different political bodies — federal, state and local — which have responsibility for different parts of the highway system; and lack of sufficient expert personnel in local planning agencies to deal effectively with all aspects of the problem. Chairman, Erie County Planning Commission Architect, Brennan and Brennan Supervisor, Harborcreek Township Supervisor, Fairview Township Chairman, Erie County Commissioners Chairman, Erie City Planning Commission Director, Erie City Planning Commission Member, Erie County Planning Commission Director, Erie County Planning Commission 215 Case Study Area No. D4 HOW ADEQUATE IS THE TRANSPORTATION PLAN The course of action which must be followed before satisfactory transportation planning can be accomplished, is the development of some approach which will show what additional facilities are needed in Erie and how the total highway system can be coordinated to provide for growth and development of the entire community. This will involve all necessary connec¬ tions with air and port developments, grade separation of rail and highway traffic and express highways and thruways. IMPLE MENTATION One of the most promising means of implementing over-all transportation planning is suggested in the pamphlet, COMPREHENSIVE PLANNING -- GUIDE FOR COMMUNITY GROWTH AND CHANGE, which is part of the COMMUNITY DEVELOPMENT SERIES: "A new kind of cooperative planning, made possible by various state and federal highway programs, can be a factor of great importance in the future development of most cities. These highway programs involve the expenditure of several billions of dollars annually, a sizable proportion of which will be spent on the arterial highways of our urban areas. "In each city, careful planning of these highways must precede their construction, and although the responsibility for both the planning and construction of these highways lies with the state highway departments, these agencies are increasingly eager to coordinate their urban highway plans with the comprehensive plans of the communities. An in¬ creasing number of highway department officials and community leaders are becoming aware of the mutual benefits derived from a joint, coordinated, cooperative planning program. "Two aspects of this coordinated effort become important to the localities. "The first has to do with the technical assistance available from the state highway depart¬ ments and the Federal Bureau of Public Roads. These agencies have long been engaged in research on the relationships between land development and traffic flow. This research has led to the development of several procedures and electronic computer programs which can be used to test and evaluate the adequacy of alternate highway plans. By completing arrangements in advance with their state highway departments, many communities will be able to take advantage of this technical assistance to test their highway plans. "The second aspect of coordination relates to the location of highways in a given metro¬ politan area. While the states must assume responsibility for final determinations, most of them are careful not to proceed without the fullest possible collaboration with communi¬ ties. One of their newest and most effective devices is to participate with a local compre¬ hensive community planning organization in a manner which permits much of the actual work of planning the location of the highways to be done by local authorities. The arrangements for this kind of cooperative planning involves the United States Bureau of Public Roads, the state highway department and a variety of local public bodies. The county government, the county highway department, the city government, the city highway department and the local comprehensive planning agency may be involved. The actual staff work is done by a combination of planning experts provided by state and local agen¬ cies. The cost of such a planning operation is financed jointly by federal, state and local agencies. "Such a highway planning procedure affects many aspects of community planning. It in¬ sures that so far as possible, highway plans are made to conform to the comprehensive plan for the community as a whole. W 216 Case Study Area No. D4 HOW ADEQUATE IS THE TRANSPORTATION PLAN? "The needs of all kinds of highway users, including mass transportation, can be given full consideration, and the existing land-use and transportation plans are modi¬ fied by consideration of economic factors in highway and expressway construction." The possibility of setting up such a planning program has been a matter of discussion among the Mayor of Erie, the Commissioner of Highways for the State of Pennsylvania and respresentatives of both the Pilot City Project and the United StatesBureau of Public Roads. The expectation is that a conference can be held in Erie within the next few months, at which such a cooperative approach to transportation planning will be worked out. 217 w w CASE STUDY AREA NO. D5 HOW ADEQUATE IS PLANNING FOR COMMUNITY FACILITIES? RESOURCE PERSONS Merle F. Babbitt Chairman, Erie County Planning Commission William A. Brennan Architect, Brennan and Brennan George Bretz Supervisor, Harborcreek Township Donald Eaton Supervisor, Fairview Township Fred W. Lamberton Chairman, Erie County Commissioners Daniel W. Miller Chairman, Erie City Planning Commission Leonard Nowak Director, Erie City Planning Commission Lee M. Smith Member, Erie County Planning Commission Matthew Stegner Director, Erie County Planning Commission BASIC FACTS AND COMMENTS The pamphlet, COMPREHENSIVE PLANNING — GUIDE FOR COMMUNITY GROWTH AND CHANGE, which is part of the COMMUNITY DEVELOPMENT SERIES, places a narrow interpre¬ tation on community facilities planning. It emphasizes public facilities almost exclusively. It minimizes consideration of private facilities such as churches, private schools and shopping centers on the assumption that these will be provided almost automatically and without any careful planning. The need for a broader approach to community facilities planning is emphasized by condi¬ tions in Erie. Almost every neighborhood in the City now finds itself with more commercial facilities than it needs and with a shortage of community facilities. The balanced development which should be the goal of every community, simply does not exist. This is not the fault of the planning officials. They have plans for the limitation of com¬ mercial facilities through zoning. They also have plans to indicate the kinds of facilities which are needed in different parts of the City. These plans include, not only public, but also private facilities such as churches. The trouble is that the work of the planners is not implemented. Experience indicates that community facilities are the best nucleus around which to plan neighborhoods. They bring people together. They generate common activities. They help create common interests and goals. Without them, the building of sound and stable neighbor¬ hoods is difficult. While many neighborhoods in Erie have an abundance of facilities, frequently these facilities are not placed so that they can be of maximum service to the neighborhood. For example, a number of public schools, even some which have been built recently, have been placed on heavily traveled streets where traffic can be a menace to children. Such facilities do not lend themselves to the many purpose use for which neighborhoods should be designed. For example, they make difficult the provision of school play and recreation space during out-of- school hours. COURSES OF ACTION Important changes can be brought about in the way community facilities planning is now being done in Erie. A few of them are: 219 Case Study Are No. D5 HOW ADEQUATE IS PLANNING FOR COMMUNITY FACILITIES? A Planning Commission usually begins its work on community facilities with maps which show the location of existing facilities. Then, suggestions are made as to where addi¬ tional facilities might be provided. A different, and perhaps much more productive approach, at least in the case of Erie, might be to start with the analysis of neighborhoods and what must be provided in those neighbor¬ hoods to increase their livability. This could change considerably the kinds of community facil¬ ities recommended and the locations for which they are planned. If this latter approach is accepted in Erie, community facilities maps would be prepared on a neighborhood basis. The maps would emphasize, not the City as a whole, but the individual neighborhood and its needs. The emphasis on the neighborhood would help residents of each area discover the kinds of public help on which they could rely as support for the private im¬ provements which they might undertake. This arrangement could become a tremendous incen¬ tive for neighborhood improvement. User Participation in the Formulation of Community Facility Plans . To some extent, the persons using community facilities now participate in the formulation of new community facilities plans. This participation has been indirect — mostly through being a statistic in the record of use of existing facilities. Where records show that a facility is consistently used beyond its rated capacity, recognition of need for the expansion of that facility is almost certain to come. If construction of a certain type of facility helps correct a bad situation in one part of the community, this evidence may suggest the construction of similar facilities in other parts of the community where similar situations exist. In addition to records of use of existing facilities, people who interest themselves in im¬ proving their neighborhoods may have ideas about the types of facilities which would serve and support their efforts. This kind of participation will be considered further in Case Study Area No. D9 - NEIGHBORHOOD ANALYSES. IMPLEMENTATION While there is no substitute for a community facilities plan as part of a comprehensive planning program, there are many ways in which that plan can be formulated. The planning com¬ mission must be prepared, not only to express the views of its technicians, but also to reflect the desires of the citizen users of all kinds of facilities. Each community facility is an instrument of service to some particular section or neigh¬ borhood of the City. It helps to establish the character of that neighborhood. It can be of max¬ imum benefit only as it is coordinated with all the other available facilities, both public and private, to provide and help shape the way of living of the people in the area. Therefore, the decision about what community facilities should go into a neighborhood should be a composite judgment in which the desires of the people of the neighborhood should be reflected. Such parti¬ cipation can frequently be secured through a neighborhood citizens' organization, if one exists. Sometimes, a church or school is the center of life of the neighborhood, and can be the focus of opinion as to what should be done. Where no such organization exists, steps should be taken to stimulate the development of one. 220 CASE STUDY AREA NO. D6 THE PUBLIC IMPROVEMENTS PROGRAM RESOURCE PERSONS Merle F. Babbitt William A. Brennan George Bretz Donald Eaton Fred W. Lamberton Daniel W. Miller Leonard Nowak Lee M. Smith Matthew Stegner Chairman, Erie County Planning Commission Architect, Brennan and Brennan Supervisor, Harborcreek Township Supervisor, Fairview Township Chairman, Erie County Commissioners Chairman, Erie City Planning Commission Director, Erie City Planning Commission Member, Erie County Planning Commission Director, Erie County Planning Commission BASIC FACTS AND COMMENTS Two distinctions should be made between the Community Facilities Plan and the Public Improvements Plan. The Public Improvements Program is concerned entirely with public con¬ struction while the Community Facilities Plan may include extensive private construction. In the Community Facilities Plan, needs are recognized and some indication given to the type of facility required to satisfy the need. In the Public Improvements Program, exact specifications are given. The size, location and probable cost of the structure are stated — together with an indication of how financing will be provided and when construction can be expected to begin. In Erie, the City, County and the public school system have formulated Public Improve¬ ments Programs. Of the three, the County program is the most indefinite. In both the City and the County, the program has been formulated by the appropriate planning commission. Probably the most needed public building in Erie is a new civic center and administration building. The present City Hall is completely outgrown as well as being inefficient in the util¬ ization of the existing space. The local government is now forced to rent space in various other buildings and is paying in rent a sum of money which would go far toward financing the new type of structure which is needed. Proper scheduling of public improvements construction could have a beneficial effect on the costs of such financing. Public officials know in advance the approximate amount of funds available to put in the budget each year to pay for principal and interest on the debt. They schedule the maturities of bonds so that the amount of debt to be retired and the interest to be paid in any one year will be carefully controlled. A similar scheduling of public construction could provide that about the same amount of money be spent each year, although tne purposes for which the money is spent may vary considerably. Once such scheduled amounts of construction have been agreed upon, the City could con¬ sider financing them out of current revenues rather than bonds. This would eliminate all in¬ terest payments, and save the taxpayers considerable amounts of money each year. A change¬ over period would have to be worked out, during which annual payments would be heavier but after which the City would be debt-free and in position to step-up the amount of its public con¬ struction without increasing tax burdens. 221 Case Study Area No. D6 THE PUBLIC IMPROVEMENTS PROGRAM COURSES OF ACTION The public school system in Erie is anticipating that school population will begin to level off within the next few years. Once that period begins, requirements for new construction should diminish and the urgency of the public school improvements program should diminish. Because of imminent changes in the form of the City government, Erie may want to delay any revision of its Public Improvements Program until after the new government takes over in 1962. At that time, the capital improvements program should be given extensive study along with other financial problems of Erie. Erie County should concentrate more attention on its Public Improvements Program im¬ mediately. It should give consideration to such problems as the acquisition of lands, which at the present are subject to flooding, as the sites of future reservoirs as was suggested in Case Study Area No. A5- AGRICULTURE. The County government should also be concerned about additional public buildings certain to be required in various parts of the County as a result of the growth of the metropolitan area. IMPLEMENTATION The planning commissions of both the City and the County should begin the formulation of long-range public improvements programs which will include immediate construction, inter¬ mediate and long-range projects. Naturally, the immediate projects will be far more specific in their planning than the intermediate or long-range projects. 222 CASE STUDY AREA NO. D7 ZONING REGULATIONS RESOURCE PERSONS W. A. Tubbs Walter Taylor Tom Flack James Borchert Paul Hammerquist Douglas A. Van Eykelbosch W. L. Roberts BASIC FACTS AND COMMENTS In the city, a zoning ordinance was adopted in 1950. It established what, for its time, might have been acceptable zoning control. Since its adoption, however, there have been over one hundred amendments to the ordinance and the Zoning Board of Adjustment has granted several hundred variances, most of which have served to weaken the zoning structure and leave the city in an unprotected position. More than that, times have changed so that provi¬ sions which were adequate when the ordinance was adopted may not be suitable for today's use. The need for revision of the present zoning ordinance seems to be obvious. The County does not have a planning staff nor have they adopted a zoning ordinance. Aside from Rapid City, only one political subdivision in the county has adopted zoning regula¬ tions so far. In the City of Rapid City, the zoning pattern has been developed by the Planning Commis¬ sion. It consists of two basic documents; a zoning ordinance and a zoning map. These docu¬ ments describe present uses of all land in the city and designate permitted uses. Zoning is the most effective planning tool which a community can have, under existing State law, for the exercise of control over land use. Zoning constitutes an exercise of the police power of the community. It is subject to the possibilities of abuse. Therefore, zoning ordinances have to be developed carefully and administered with great firmness and understanding. The Planning Commission makes recommendations to the Council with respect to all proposed changes of zoning. In the past, the Council occasionally showed a complete lack of respect for the opinions of the Commission. However, they are giving complete cooperation at the present time. The subject matter of any adequate zoning ordinance must include: 1. Permitted land uses 2. Size of buildings and coverage of the land 3. Set-back provisions 4. Off-street parking and loading Because of the failure to enact, modernize and enforce zoning throughout the Rapid City metropolitan area during the past years, many inappropriate land uses exist in all parts of the Member, City Planning Commission County Commissioner Member, Zoning Board of Adjustment Member, City Planning Commission Member, City Planning Commission Assistant City Engineer City Building Inspector 223 Case Study Area No. D7 ZONING REGULATIONS community. These land uses are costly in terms of the inefficiency of the community and the real estate values which are lower than their potential. Land uses must be corrected as part of a program of balanced community development. COURSES OF ACTION The first step to be taken is to initiate a referendum to empower the city and county to establish a statutory planning commission. The second step to be taken is to modernize the zoning ordinances in the City of Rapid City. The proposed new zoning ordinances should be developed by a qualified Planning Con¬ sultant with the cooperation of the Planning Commission. The third step is to establish a city-county planning commission and to develop and en¬ force adequate zoning regulations within a three mile limit of Rapid City as soon as possible. The fourth step is to make clear to the enforcement officials and courts, before which zoning matters may come for review, that substantial community support exists for the strict enforcement of adequate zoning provisions. The fifth action to take is to work through citizens' groups and particularly neighborhood organizations, where they exist, to get widespread understanding of zoning as a protection of existing property values. This knowledge will prevent citizens from unwittingly signing peti¬ tions for exceptions to the provisions of the zoning law, and encourage citizens generally to oppose such petitions if others prepare and submit them. IMPLEMENTATION All five courses of action outlined above are complementary and can be pursued simul¬ taneously. In order for them to be successful, the following help must be provided: A. Facts. These must come principally from the Planning Commission. The facts should be related, not only to provisions of the law, but also to the practical benefits and protection which the law can provide for land and land use in the area. B. Study and Discussion. This matter is of sufficient importance to deserve a place in the curriculum of every course of civic affairs in the schools. Perhaps this is the best single channel through which to reach large numbers of persons, and to inform them about what zoning can contribute to them and to the community. Discussion at citizens' organization meetings is also an excellent means of reaching people and creating support. For this purpose, a panel of qualified speakers on the subject of zoning should be established. Program chairmen of citizens' organizations should be contacted and urged to take advantage of the available speakers for at least one meeting. C. Continuity. Persistent promotion of this program must be continued throughout the years. By the very nature of the legal limitations of zoning ordinances, few, if any, changes can be brought about quickly. The seed has to be planted and given time to grow. At every stage in its growth, it must be nurtured and protected. Only in that way can the zoning device make the great contribution of which it is capable to the growth and development of the Rapid City area. 224 CASE STUDY AREA NO. D8 SUBDIVISION REGULATIONS RESOURCE PERSONS Merle F. Babbitt Chairman, Erie County Planning Commission William A. Brennan Architect* Brennan and Brennan George Bretz Supervisor, Harborcreek Township Donald Eaton Supervisor, Fairview Township Fred W. Lamberton Chairman, Erie County Commissioners Daniel W. Miller Chairman, Erie City Planning Commission Leonard Nowak Director, Erie City Planning Commission Lee M. Smith Member, Erie County Planning Commission Matthew Stegner Director, Erie County Planning Commission BASIC FACTS AND COMMENTS The power to regulate subdivision development has been established under Pennsylvania law for some time. Until the County Planning Commission was established, the City of Erie was legally authorized to exercise control over subdivision development for a distance of three miles beyond the borders of the City. Now, with the establishment of planning throughout the County, regulation of subdivisions is delegated exclusively to the planning commission for each of the local jurisdictions. The purpose of subdivision regulation has been stated in the model ordinance put out by the Erie County Planning Commission to be: "assuring sites suitable for building purposes and human habitation, providing for the harmonious development of the municipality, providing adequate open space for traffic, recreation, light and air, and providing proper distribution of population in order to create conditions favorable to the health, safety, morals and general welfare of the citizens. "Subdivision regulations are designed to cover, particularly, two aspects of land development: 1. The layout or design of streets and lots or building sites, and 2. The standards of construction of streets and utilities. "Inadequate standards in either case may create headaches for both the municipality and future property owners in high maintenance and replacement costs. On the other hand, excessive and unreasonable requirements have, in many cases, discouraged or made eco¬ nomically impossible the desired development and growth of the community." COURSES OF ACTION Without doubt, every new subdivision in the Erie area should be subjected to control. Machinery for that purpose already exists. No further courses of action are necessary. 225 Case Study Area No. D8 SUBDIVISION REGULATIONS IMPLEMENTATION In passing judgment on subdivision plans, the governing body should be aware that it is not only protecting the public interest in the subdivision of the land but also telling the devel¬ oper, in effect, how much money he must spend in the preparation of the land for the approved uses. This can affect the price of real estate and influence the types of homes to be built. If these prices become too high, they may prevent the production of middle-income housing which is badly needed in Erie as in most communities. 226 CASE STUDY AREA NO. D9 NEIGHBORHOOD ANALYSES RESOURCE PERSONS Merle F. Babbitt William A. Brennan George Bretz Charles G. Downing Lowell C. Drake Donald Eaton John J. Kissell Fred W. Lamberton Msgr. Edward H. Latimer Daniel W. Miller Leonard Nowak Robert J. Orlando Mrs. Helen B. Passmore Lee M. Smith Matthew Stegner Louis J. Tullio Michael Wargo Mary R. Warner Chairman, Erie County Planning Commission Architect, Brennan and Brennan Supervisor, Harborcreek Township Director, City Department of Parks and Public Property Coordinator, Health, Safety and Physical Education, Erie School Board Supervisor, Fairview Township Assistant Manager, United Fund of Erie County Chairman, Erie County Commissioners Superintendent, Parochial Schools Chairman, Erie City Planning Commission Director, Erie City Planning Commission Superintendent, City Bureau of Recreation Associate Executive Secretary, Welfare Council of Erie County Member, Erie County Planning Commission Director, Erie County Planning Commission Secretary-Manager, City of Erie School Board Superintendent, Presque Isle State Park Executive Director, Erie County Board of Assistance of the Pennsylvania State Department of Public Welfare BASIC FACTS AND COMMENTS The persons giving leadership to planning activities in the Erie area have not been deeply concerned with neighborhoods. Some work on neighborhood analysis was done as part of the Workable Program requirements for the City in connection with its urban renewal program. But that analysis was concerned primarily with housing. It did not go deeply into the social pat¬ terns of neighborhood living and their relationship to commercial growth and development. Any careful examination of land use, zoning, community facilities, housing conditions, and cultural and recreational opportunities is certain to suggest that Erie has serious problems involving its neighborhoods. Because the specifics about Erie neighborhoods have not been adequately developed, some general discussion of the problem seems to be justified. 227 Case Study Area No. D9 NEIGHBORHOOD ANALYSES '' Vast amounts of detailed information about every neighborhood of any considerable age is to be found buried in the files of the various administrative departments of most city governments. There will be maps of the area showing the location of all kinds of physical facilities. There will be reports on the incidence of sickness and disease, juvenile delin¬ quency, crime and fire damage. There will be records showing where traffic congestion is greatest, structural deficiencies most prevalent and public facilities and services most in- inadequate. Frequently, this information can be translated into financial statistics. There will be evidence of costs involved in the servicing of particular neighborhoods. There will be evi¬ dence of taxes received from real estate in various areas, and the trends in assessed valu¬ ations of property. Such financial information has a place in neighborhood analyses and may be one of the key factors in the selection of areas for improvement. Many neighborhoods will present special problems which will call for individual analy¬ sis. As an indication of some of the types of investigations which can be particularly helpful, it may be well to give consideration to two quotations from a study entitled, "Urban Renewal in a Chicago Neighborhood," * which was directed by Dr. Harvey S. Perloff. The first quotation follows: "There is no going back and no stopping of change. The aging of buildings and neighborhoods, the changing social structure, even fashions in living — these and many more elements, prevent any freezing of situations or any going back. What is called for is a positive program to influence change in a desired direc¬ tion. The key question is not: Will some of the present residents leave and new families move into the area, but, rather, what kind of people will leave and what kind of people will come in? "If enough people of the desired type can be attracted into the area by positive action, then there would be little worry about less compatible families moving in. It is also evident that the smaller the number of present residents who leave the area for other than 'normal* reasons, the less is the scope of the problem of attracting new desirable residents." The second quotation lists signs of rapid community deterioration which appear to be more or less typical of all declining sections of middle-aged American cities, as follows: "(1) the physical deterioration of properties by reason of age, inadequate mainten¬ ance, and misuse; (2) the increasing obsolescence of homes, community facilities and area layout (such as the street pattern) due to the changing pattern of family life and to changing technology (for example, as regards transportation and shopping); "(3) the overcrowding of buildings through the conversion of existing residences into smaller housing units and as a result of the increase in population, a gen¬ eral shortage of community facilities and services (educational, recreational, parking and so on); (4) the high incidence of crime against persons and property accompanying the general community decline; * Published by the Hyde Park Herald, 5335 South Lake Park Avenue, Chicago, Illinois 228 Case Study Area No. D9 NEIGHBORHOOD ANALYSES "(5) the breakdown in the enforcement of building and zoning laws and the lowering of standards in the provision of public services; the unbelievable neglect of the for¬ merly beautiful parks, play areas and beaches of Hyde Park-Kenwood is typical of the lowering of service standards in declining areas; and (6) the accelerated in-migration of lower-income families with an exodus from the community of higher income families with a corresponding lowering of building- maintenance levels and of community 'tone' generally." In some neighborhoods, there will be a shortage of housing available to minority families This should become a matter of immediate community-wide concern. An expansion of the total supply of housing available to minorities may be required as the only means of preventing the further concentration of these families in highly congested areas. Effective community action to prevent or relieve such congestion opens the way for more effective enforcement of housing standards, encourages voluntary improvement and maintenance on the part of property owners, expedites the rehousing of displaced families and helps in the up-grading of neighborhoods. If a community will undertake a careful analysis of its neighborhoods, it is likely to come to conclusions such as the following: 1. No city can have a greater solidarity and strength than the neighborhoods of which it it is composed. 2. To increase the stability of neighborhoods, it is necessary to identify them, to analyze their points of strength and weakness, and to formulate specific plans for their protection and improvement. 3. Plans for any neighborhood must take into account not only its physical condition, but also the attitudes, skill and resources of its residents. 4. The neighborhood planning process must be integrated with the comprehensive commu nity planning process and should be carried out in each city with the cooperation of those who will be entrusted later with urban renewal project operations. There are also some conclusions to be drawn from even a superficial examination of the situation in Erie, as follows: 1. Through the heart of Erie runs two rail lines and two major highways. The rail¬ roads are lined with industry. The highways are bordered extensively by commer¬ cial installations of all kinds. They constitute rigid barriers to the creation of good neighborhoods. 2. Many residences are so interspersed with industrial and commercial uses that they do not lend themselves to good neighborhood organization. The residential strips are too elongated and have too many mixed uses. 3. Many of the churches, schools and community facilities are located on through streets where access is invited from all parts of the City. They are not designed, and do not serve the needs of the neighborhoods. 4. There are few neighborhood centers. Little conscious effort is being put into the development of strong stable neighborhoods. Such conditions cannot be corrected quickly. However, they present one of the most ser¬ ious problems facing Erie. Until they are corrected, the future of the City will be in doubt. 229 Case Study Area No. D9 NEIGHBORHOOD ANALYSES COURSES OF ACTION The making of neighborhood analyses offers a wide opportunity for the participation of many persons and a wide variety of skills. So far as the planners are concerned, a most effective pattern of participation has been established by the Planning Commission of the City of Philadelphia. In that city, planners work as a service agency for a neighborhood, not as program developers for it. These planners attend meetings at which they learn of the interest and objectives of the residents. Then, they formulate suggestions which may help the residents achieve their objectives. Further meetings and discussions result in agreements and courses of action which the residents accept and pro¬ mote as their own. IMPLEMENTATION In Erie, a number of specific steps can be taken to begin the restoration of neighborhood morale and the improvement of living conditions among the residents. Efforts at neighborhood improvement seem to suggest that some organization among the residents within a neighborhood is necessary if effective action is to be taken. A neighborhood or civic association can serve as the nucleus for an effective organization. A neighborhood organization can be built around loyalty to some institution such as a church or a school. Per¬ haps the most successful organizations are built around churches. Only through some form of group organization and incentive can a neighborhood be up¬ graded and stabilized to insure that the improvement will be maintained during the life of whatever mortgages may be required on individual properties in order to bring about the up¬ grading. Once such an organization is functioning effectively, there is real promise of enough stability to justify property owners in undertaking rehabilitation or other improvement projects. One of the first actions needed is to establish the identity of the neighborhood and to find some common ground among the residents on which they will work together. A second necessary action is to examine the situation which relates to the neighborhood. The extent to which non-residential or non-conforming uses have been permitted in the neigh¬ borhood can be readily determined. Any needed corrections can be suggested and action taken to initiate improvement. The prevention of any further deviations from sound zoning should be inaugurated. A third initial action to be taken by a neighborhood organization is to determine the kinds of community facilities which are needed, and the possibilities of securing them. The extent to which a community center and recreational facilities can contribute to such a development should be considered. Actions which can be taken without participation or approval from residents provide no adequate basis on which to complete the planning and begin the actual improvement of a neighborhood. Real implementation is possible only when residents, armed with the informa¬ tion which planners may put at their disposal, decide for themselves that improvements must be made and begin to initiate their own improvement programs. That effort becomes the essential ingredient for success. 230 CASE STUDY AREA NO. DIO PLANNING FOR TRAFFIC CONTROL RESOURCE PERSONS Sherwood H. Hiller Neil G. Brown Traffic Planning Engineer Chief of Police City of Tampa BASIC FACTS AND COMMENT Recognizing that problems are basically engineering problems, a Traffic Engineering Division was created in the Department of Public Works and a Traffic Engineer employed in April of 1959. Both long-range planning and short-term improvement programs were, and are, in con¬ tinuous development. Some of the programs are already underway, some about to start and some are for the future. A partial outline follows: Signalization In the past 24 months in excess of $50,000 of the most modern electronic vehicle actuated equipment has been engineered and installed, relieving some serious immediate problems. Approximately 20 intersections have been treated. Additional intersections are receiving installations. Seven special mid-block school crossing signals have been installed with three more in the process. Additional installations will be completed in 1962. Design of the most advanced Master Signal Control Center in the United States was completed after 2 1/2 years of intensive work. Bids have been taken and contracts totaling $125,000 have been awarded on the first major elements of a complete new signal system utilizing among other elements, radio. Design on additional elements is progressing rapidly and it is anticipated that bids on additional equip¬ ment will be requested during 1962. Pavement Marking An advanced truck mounted pavement striping rig has been designed, bid, and delivered and put in operation resulting in a more comprehensive and economical marking program. A two year test of thermoplastic marking compounds was completed, resulting in the initiation of the use of this material. Approximately ten tons of the material has been used for crosswalks with the bulk of them school crosswalks. This will result in good, effective cross¬ walks lasting a number of years with an extra bonus of a sizeable labor and material cost saving during the effective life of the markings. The program is being expanded. Channelization A number of channelization devices such as rubber "buttons" and flexible delineators have been pioneered and made, more effective than commercially available, by our own materials development. Signal Maintenance Over 100 signal installations were reworked, including renewing and modernizing optical systems, repainting and rehanging on disconnect hangers which will permit quicker and more economical maintenance in the future. The program has been made a continuing one. Signs Larger, more effective regulatory signs in conformance with the new uniform AASHO Man¬ ual are being utilized in all new installations and for replacement of old signs. Over a period of about three years most of the old signs will be replaced. Considerable effort toward the use of overhead signs is being expanded. 231 Case Study Area No. DIO PLANNING FOR TRAFFIC CONTROL Offstreet Parking Three central business district fringe lots totaling approximately 400 spaces were put in operation. Additional facilities are planned totaling between 2,000 - 3,000 spaces. Financing feasibility studies are virtually completed. Arterials Effective use of one-way streets, parking restrictions, regulations and other tools in a continuing effort provided for more effective use of present facilities. A very large program of reconstruction moved through the planning stages, design states to construction phase. The Traffic Engineering office participated in all phases. Realistic Speed Limits A continuous program of studies to revise speed limits to realistic standards has resulted in a number of changes. COURSES OF ACTION Continued effective and active support of the program under way. Support adequate budg¬ etary allocation within the over-all fiscal ability and budgetary priorities of the city programs. Commendation and continued support of appropriate city officials for their vision and pro¬ gressiveness in backing a program that is generating attention, comment and inquiries from as far away as New Zealand and West Germany. 232 CASE STUDY AREA NO. Dll THE THREAT OF SLUMS AND BLIGHT RESOURCE PERSONS Merle F. Babbitt Chairman, Erie County Planning Commission William A. Brennan Architect, Brennan and Brennan George Bretz Supervisor, Harborcreek Township James A. Currie President-Treasurer, Erie Foundry Company James B. Dwyer, Jr. Attorney Donald Eaton Supervisor, Fairview Township William J. Flynn President, The Bank of Erie Arthur J. Gardner Mayor, City of Erie Thomas C. Hoffman Executive Director, Erie Redevelopment Authority Kenneth H. Ishler Division Manager, Pennsylvania Electric Company John J. Kissell Assistant Manager, United Fund of Erie County Fred W. Lamberton Chairman, Erie County Commissioners Joseph E. Meagher Executive Editor, Erie Times-News Daniel W. Miller Chairman, Erie City Commission Sumner H. Nichols, Jr. Vice President, Security-Peoples Trust Company Leonard Nowak Chairman, Erie City Commission Mrs. Helen Passmore Associate Secretary, Welfare Council of Erie County Harold G. Reslink President, Reslink and Wiggers Lee M. Smith Member, Erie County Planning Commission Matthew Stegner Director, Erie County Planning Commission Miss Mary R. Warner Executive Director, Erie County Board of Assistance Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS Much of the work of planning has lacked public support because people failed to appreciate not only its practical value, but also the costs generated by failure to plan. This has been partic ularly true of the urban areas in which deterioration has been allowed to develop. While 233 Case Study Area No. Dll THE THREAT OF SLUMS AND BLIGHT obsolescence has been recognized as a problem in cities, most people seem to have assumed that it was a problem for the owners of property and not for the community as a whole. Any careful consideration of the facts will show that the cost of obsolescence and deter¬ ioration to the community is tremendous. Perhaps the most significant impact of these facts in Erie and in most other cities is on the tax base of the community. Real estate taxes are derived partly from land values, but much more largely from the values of improvements made on the land. Currently, there are many parts of Erie where, in spite of improvements to specific properties, an over-all decrease in property values is threatened. This means that growing de¬ terioration is offsetting all the improvements made. In the Central Business District, an actual loss of property values takes place. Only in the outskirts, where new structures are being built on vacant land, is there any real increase in property values. Once these open areas have been built up, and as other areas grow older, a loss in values and thus a loss in tax revenues is almost certain to be experienced by the City as a whole. In Erie, as ir. all cities, there are many areas in which the amounts of money spent on municipal services -- such as health care, juvenile delinquency, crime and fires — far exceed the amount of taxes paid from those areas. No city can afford to let the losses from deteriora¬ tion become disproportionately large because of the burden placed upon other segments of the local economy. If blight exists, why is so little being done about the problems it creates? The answer must be that too few persons understand the problems and are prepared to support the action program required to effect correction. COURSES OF ACTION The pamphlet, COMMUNITY ANALYSIS — FOUNDATION FOR DECISION MAKING, which is part of the COMMUNITY DEVELOPMENT SERIES, points out that every locality has an arsenal of information from which necessary facts on slums and blight can be obtained. These facts, from local sources, can be brought together, analyzed and used in the development of a program for action to solve problems of slums and blight. Erie definitely has much of this information available. Probably the planning commissions which serve the Erie area are the agencies best suited to pull the facts together, interpret them and help citizens of the community to understand them. These agencies can readily get the needed facts from such sources as the following: 1. The Police Department, maintains complete records on the incidence of crimes and juvenile delinquency. It should be possible to pinpoint the areas from which criminals come. This would indicate the neighborhoods in which conditions are so bad that some remedial action should be taken. 2. The Fire Department maintains records of the origin of fires. It can show where poor maintenance of structures and the accumulation of trash, both in houses and backyards and on the streets, is creating fire hazards and raising costs of fire protection. 3. The Health Department has records of the incidence of disease. By analyzing these records, the areas in which most diseases originate can be identified, thus indicating the neighborhoods to which special attention should be given. 4. The Assessment Department has records of changes in real property values in various parts of the City. These facts can be used to show the inroads of obsolescence and the essentiality of positive action if the tax base of the community is to be kept sound. r V 234 Case Study Area No. Dll THE THREAT OF SLUMS AND BLIGHT Any careful analysis of this material is likely to indicate the excessive costs of slum and blighted areas and to indicate the absolute necessity of constructive action by the community in order to protect itself from the deterioration which already has been allowed to develop. IMPLEMENTATION The mere documentation of the need for constructive action to prevent deterioration, and to eliminate existing slums and blight in Erie is not enough. A positive program for dealing with these problems must be developed. Under State law, both the Redevelopment Agency for the City of Erie and the Erie Planning Commission have definite responsibilities for the development of programs to assist in the res¬ toration of healthy neighborhoods and in the elimination of slums and blight. A consideration of how this responsibility can best be discharged will be taken up in the case studies dealing with urban renewal. 235 CATEGORY E HOUSING SECTION INTRODUCTION CASE STUDY AREA NO. El CASE STUDY AREA NO. E2 CASE STUDY AREA NO. E3 CASE STUDY AREA NO. E4 CASE STUDY AREA NO. E5 CASE STUDY AREA NO. E6 CONDITION OF EXISTING HOUSING HOW IMPORTANT IS A HOUSING CODE? RELOCATION OF FAMILIES IS MORE PUBLIC HOUSING REQUIRED? THE FUTURE OF PRIVATE HOUSING CONSTRUCTION HOW IMPORTANT IS LOCAL TAX POLICY TO HOUSING? 237 INTRODUCTION Thirty years ago, any discussion of housing would have appeared in the sections of this workbook concerned with forces of the free market, rather than in the section where emphasis is placed on organized community effort. In that rather recent past, housing was a matter of individual responsibility and was provided exclusively by private enterprise -- at least in the United States. Since 1930, much has happened in American cities to make housing a matter of public concern. During the depression, the federal government stepped in to stimulate production of housing, both through mortgage insurance programs under the Federal Housing Administration and by direct subsidy through what is now the Public Housing Administration. During World War H, shortages of housing and restrictions on the availability of construc¬ tion materials resulted in rent control by the federal government and in further subsidies for military housing and for housing in war production areas. The urban renewal program began in 1949 with limited slum clearance and urban redevel¬ opment authorizations and an accompanying requirement for the relocation of displaced families. This program was quickly expanded into full scale urban renewal with federal subsidies not only for slum clearance and redevelopment, but also for rehabilitation and conservation. When housing first became a matter of public concern, local governments refused to accept any important responsibility for solving the problems involved. Separate public agencies had to be set up to administer various aspects of the program. However, as cities have learned how closely housing is related to their future costs of services and to sources of tax revenue, they have taken a direct interest in the matter. Today, cities are showing much concern about the housing of their citizens. They have been developing new tools with which to insure the quality of the housing in which citizens live; to help in the relocation of families displaced by public improvements; to make possible the clearance and redevelopment or the rehabilitation of deteriorated areas; and to provide low- rent public housing for some of the families. Whether or not these tools are essential and are adequate for the purpose to which a given city is now committed can be determined only after a study of both problems of housing as they exist and courses of action needed for the solution of these problems. Such an analysis will be undertaken in this and the succeeding category. 239 c CASE STUDY AREA NO. El CONDITION OF EXISTING HOUSING RESOURCE PERSONS Charles G. Barney Executive Director, Home Builders Association of N. W., Pennsylvania Howard W. McKinney Executive Director, Erie Community Relations Commission Leonard Nowak City Planning Director Richard W. Ruth R. W. Ruth Real Estate Joseph A. Schmid Executive Director - Secretary, Housing Authority for the City of Erie Fred A. Sesler, Sr. President, Sesler Agency, Inc. Matthew Stegner County Planning Director BASIC FACTS AND COMMENTS The most complete picture of housing in Erie and Erie County is presented by figures from the United States Bureau of the Census. Since these figures are final only for 1950, they have been adjusted by the Erie County Planning Commission. The adjusted figures for 1958 are as follows: there are 40,695 dwelling units in the City; the County has an additional 32,345 units; the total is 73,040. About 15% of these dwelling units, according to the Census figures, show some degree of dilapidation. On this basis, there are at least 10,956 dwelling units in need of some improvement or repair. This does not necessarily mean that all of these units are seriously substandard. The great weakness of the Census figures is that they do not give a city or county like Erie any tool with which to work for the improvement in housing. Census figures give no indi¬ cation of the extent to which either clearance of structures is necessary or rehabilitation is possible. They provide no final indication that structures are unfit for human habitation. As Erie becomes concerned about the condition of its housing, there are tools which it can use to advantage. One is the Housing Code which deals with the condition and occupancy of structures. This is so important that it will be treated in this chapter as a separate problem area. The other kind of tool has been developed by the comprehensive planners in the form of land-use plans and zoning regulations which help control the environment for housing. Any examination of the land-use plan for Erie (Case Study Area No. D3) will show that, in instance after instance, land is occupied by structures which do not conform to the highest and best use. This is true where large single homes stand on plots of ground for which they con¬ stitute an inadequate coverage. It is also true where houses are over-crowded on the land, even to the point of having more than one structure standing on an individual lot. Zoning laws and maps, which were discussed at length in connection with Case Study Area No. D7, show a variety of non-conforming uses, most of which tend to adversely affect prop¬ erty values. The condition of housing in Erie can be summarized roughly as follows: 70% of the residential structures in Erie are thirty years old and older. Ten per cent to 15% of these structures are definitely deteriorated. This housing has passed through several periods of occupancy by ethnic and racial groups. At present, much of it is occupied by Negroes. While many of these groups are obviously of low income, the rents they are expected to pay frequently 241 Case Study Area No. El CONDITION OF EXISTING HOUSING do not reflect the poor quality of the accommodations. Such an indication of unsatisfactory condition of housing is perfectly normal and is to be found in practically every older city. COURSES OF ACTION While no city can protect itself completely against changes in the condition of its housing supply, it can take action which will lessen the impact of the forces of change. Positive control can be exercised through zoning regulations and housing codes. The zoning regulations can create protected areas in which only residential construction is permit¬ ted. Housing codes can establish conditions under which dwelling units may be occupied. This device can prevent the over-crowding of units and also the occupancy of units which are unfit for human habitation. Enforcement of such regulations can be accomplished under the police power. Advisory action can be taken by planning commissions through formulation of patterns of development for the community as a whole. These patterns can show how more efficient use could be made of the land, encourage private owners to make needed improvements in their properties, and become the basis for action by governments, perhaps in the form of urban renewal, to produce decent, safe and sanitary conditions in housing. IMPLE MENTATION Local action is the key to improvement in housing. This action can be taken by individual owners on their own initiative. It can also be taken by local governmental agencies acting under State and local laws. What is actually done in a given community will be determined by specific local circum¬ stances. However, conditions in most cities are so similar that the problems of one are likely to be typical of problems of the others. Several of these problems will be considered in the pages which follow. 242 CASE STUDY AREA NO. E2 HOW IMPORTANT IS A HOUSING CODE ? RESOURCE PERSONS Charles G. Barney Executive Director, Home Builders Association of N. W. Pennsylvania Howard W. McKinney Executive Director, Erie Community Relations Commission Leonard Nowak City Planning Director Richard W. Ruth R. W. Ruth Real Estate Joseph A. Schmid Executive Director - Secretary, Housing Authority for the City of Erie Fred A. Sesler, Sr. President, Sesler Agency, Inc. Matthew Stegner County Planning Director BASIC FACTS AND COMMENTS The City of Erie now has a Housing Code, although the County has none. The City code was adopted primarily to fulfill a requirement of the federal government for a Workable Program in connection with urban renewal activities. Assurances were given at that time that the code would not be retroactive. The evidence points strongly to a desire on the part of the governing body to "get by" rather than to create a tool through which positive control of housing could be established. The present code is deficient in several respects. For example: its definition of over¬ crowding is so loose that 14 or more persons might occupy a four-room house without being in violation of the present code. There is no requirement that each family should have its own private bath. Any comparison of the existing code with the pamphlet, PROVISIONS OF HOUSING CODES IN VARIOUS AMERICAN CITIES, published by the Housing and Home Finance Agency, Washington, D. C., will show many other aspects in which the Erie Code seems to be deficient. So far as administration of the Housing Code is concerned, Erie is even more lax. A division of Housing Inspection exists in the Bureau of Health. It has a staff of one full-time and one part-time inspector. But there is no evidence of effective enforcement on the scale required to protect individual structures or neighborhoods in Erie. There are reports that, where viola¬ tions have been discovered and notices of condemnation have been issued, notices have been removed and reoccupation of the structures has been permitted, although no evidence exists that any correction of violations has occurred. Most persons in Erie have not been particularly concerned about this situation. Many citizens have never had any direct experience with the Housing Code. Some do not know what a housing code is. This condition is understandable because most persons live in structures which are clearly standard and, therefore, above the limits to which the Code applies. There is no reason for a code enforcement official to inspect their premises. No possibility exists that they will be told to improve their dwelling unit or be evicted. They have no appreciation of the situation faced by residents of the community who live under sub-standard conditions, and who are directly affected by housing codes. Frequently, citizens not affected by these codes have little sympathy for those who be¬ come involved. Some persons believe that, if the family has to live under such conditions, the family itself is to blame. They insist that any family which wants to improve its housing can do so. In their opinion, there is no use in trying to help families who do not want to help themselves. 243 Case Study Area No. E2 HOW IMPORTANT IS A HOUSING CODE? It is true that many families remain in slum and dilapidated housing conditions by choice. But it is also true that many families, and particularly minority groups and families with many children, cannot find decent, safe and sanitary accommodations which are available to them at prices they can afford. They have no choice but to accept sub-standard accommodations. In effect, these families are forced to help create and maintain the slums. Why is this situation of concern to citizens generally? The answer must be this: because the entire City is affected by sub-standard areas and living conditions which exist in them. The cost of slums and blight has already been discussed in Case Study Area No. Dll. They greatly increase the cost of government. They can become sources of disease which can spread through¬ out the City. They can affect an entire community in many ways which are of concern to every citizen. The Housing Code represent an exercise of the police power. It is a form of coercion to be used against sub-standard home owners and residents. In some case, the forms of coercion provided under the Housing Code may not seem to be severe enough. In other cases, the restrictions of the Code may appear to be unduly severe. The contrast can be made clear by the following examples: A. The small home owner. Frequently, slum properties are owned by individuals who live on the premises and who would like to improve their building if they were finan¬ cially able. These persons may be struggling to raise a large family, to put children through school, or to take care of old or sick relatives. Usually, these persons have no savings and no credit with which to bring properties up to standard. They deserve every sympathy. B. The slum landlord. Many landlords deliberately maintain poor conditions in their structures because it is the most profitable way to operate slum housing. They provide minimum maintenance. They overcrowd their structures. They charge as much as possible for the accommodations. Some landlords are willing to violate all laws of common decency. They have no concern about how much of a burden they place upon the community. Pressures are already building up in Erie which seem destined to force changes in the attitude of public officials toward the local Housing Code. Many of these pressures are being generated by the urban renewal program. One urban renewal project has already been undertaken in Erie. It consists of the ac¬ quisition and clearance of all the structures in the Peach-Sassafras Area. Clearance was nec¬ essary because of the excessive deterioration which has been allowed to develop in the area. If Housing Codes had been in existence in previous years, and had been enforced, some parts of the area might not have required clearance. If a Housing Code had been in existence and en¬ forced at the time of clearance, (which was not the case) costs of acquisition might have been reduced. Costs were high because acquisition appraisals of such property take into account, among other factors, the replacement value of the structures and the income which they are producing. Where an adequate housing code exists and is enforced, dilapidated structures can be torn down and overcrowding can be eliminated. This lessens acquisition costs and increases the amount of urban renewal which can be accomplished with the limited funds available to most cities. Where housing code violations are not corrected, the owners can be paid for both struc¬ tures which should be torn down at their expense and for excess income made possible by ille¬ gal crowding. Such payments are nothing less than windfall profits to the owners of slum properties. 244 Case Study Area No. E2 HOW IMPORTANT IS A HOUSING CODE? The necessity for a basic housing code becomes evident when a community becomes con¬ cerned about improving the quality of its housing. No truly comprehensive action for the solu¬ tion of housing and urban renewal problems will be possible until such a code has been enacted and provision for its enforcement has been made. COURSES OF ACTION How does a city go about the formulation of an adequate Housing Code? The process is not simple or easy. Many interests are involved, both legitimate and illegitimate. For that reason, a very carefully worked out procedure must be used to protect all legitimate private interests and at the same time promote the public interest. The details involved may be suggested in part by the following quotation from the pamphlet, COMMUNITY LEADERSHIP — KEY TO LOCAL DEVELOPMENT, which is part of the COMMUNITY DEVEL¬ OPMENT SERIES: "Housing Codes involve development and enforcement of minimum standards under which dwelling accommodations can be inhabited. They affect the lives of many familes. They can also have important economic implications for property owners and taxpayers. Any discussion of a housing code is almost certain to involve controversy. A city which does not have an up-to-date housing code and wants to develop or revise one, must be prepared to work its way through a complicated process. "The first step is to get the city council to agree that a new code should be at least con¬ sidered. In some cases, the council will assume responsibility for the selection of a com¬ mittee to do the drafting of the new code. In other cases, they may do no more than indi¬ cate that they will consider adoption of such a code if it is prepared. Under these latter circumstances, some organization must take the responsibility for selection of the drafting committee. "Regardless of the method of its selection, the drafting committee must be composed of qualified persons having some knowledge of what should be incorporated in housing codes and a real desire to produce a code adapted to the needs of their community. This com¬ mittee, however small in number, should represent a cross section of community inter¬ ests in the housing field. "Before this committee undertakes to act, its members will familiarize themselves with existing state law. Members will also consult representatives of the construction indus¬ try — the general and specialty contractors and home builders; the building trade unions; the construction design professions (engineers and architects); the mortgage finance and real estate sales organizations; and the building materials manufacturers and distribu¬ tors. The views of fire protection and public health authorities will also be given consideration. "The second step is the actual preparation of a draft of a proposed housing code. The work may be done by hired consultants or by staff members of the committee. In any case, the work involved will consist of gathering background information, making prelim¬ inary drafts of provisions and keeping records of committee deliberations. "Regardless of the methods of formulating code provisions, the committee will make studied comparisons between its drafts and the provision of standard codes as published nationally by organizations in this field. Such a check will give added assurance that the code as proposed by the committee will be sound and acceptable. 245 Case Study Area No. E2 HOW IMPORTANT IS A HOUSING CODE? "The third step is the release of the committee draft for public consideration. This is where the work of the committee really begins. It has to justify its decisions in the court of public opinion. It must defend both its technical and its policy decisions. "The report of the committee will be publicized widely. Members will make themselves available to attend meetings of interested groups to answer questions and explain why cer¬ tain actions were taken. If valid objections are raised, the committee may want to hold a meeting to consider them and possibly make revisions in its proposed housing code. "The fourth and final step is to make the final report and recommendations to the govern¬ ing body, which alone has authority to enact the proposed code into law. That body is likely to hold public hearings on the proposed code. At such hearings, members of the drafting committee will be present to continue their explanations and defend their recom¬ mendations. If the issues cannot be resolved at the hearings, the governing body may in¬ sist that adoption of the code be submitted to the electorate for its decision. "Citizen participation is certain to be involved regardless of whether the housing code is enacted by the governing body or submitted to the people for their vote. Participation will also be involved in the enforcement of the code which is just as important as its enactment. The record shows that for most communities, neither enactment nor enforcement takes place unless substantial popular understanding and support have been developed." IMPLEMENTATION If a serious effort is to be made to enact and enforce any adequate housing code, provision must be made for both effective leadership and for public participation in the process. Leadership must be recruited from among key persons who are convinced that an adequate housing code is an essential tool for the protection of existing housing for the preservation of real property values essential to a stable tax base, and to the growth and development of the community. These persons must be prepared to put the public interest ahead of any private or profit motives they may have. Citizen participation will depend largely on local conditions. It may or may not involve (he full Citizen Participation Process as described in the COMMUNITY DEVELOPMENT SERIES. To avoid the necessity of going through the entire Citizen Participation Process, a sub¬ stitute procedure may be sufficient. That procedure might consist of the formulation of a Citizens' Committee for Housing Code Enforcement. If such a committee could get the job done, a considerable amount of time and effort might be saved. To explore the possibilities of creating such a committee is a relatively easy matter. Some community group such as the Greater Erie Chamber of Commerce, might prepare a brief statement of the facts and distribute it to the heads of a considerable number of citizens' organizations. These leaders would be requested to study the facts and then attend a meeting at which the facts would be discussed. Those persons expected to oppose the movement should be invited to attend, as well as those expected to be in favor of housing code enforcement. Both sides of the issue should be discussed thoroughly. Then, some indication should be requested of the extent to which those present favored definite action, were opposed, or were indifferent. On the basis of this indication, a decision could be made to try to advance the program under the auspices of the assembled group, or to go into some more complicated procedure such as the complete Citizen Participation Process. 246 CASE STUDY AREA NO. E3 RELOCATION OF FAMILIES RESOURCE PERSONS Charles G. Barney Executive Director, Home Builders Association of N. W. Pennsylvania Thomas C. Hoffman Executive Director, Redevelopment Authority of Erie Howard W. McKinney Executive Director, Erie Community Relations Commission Leonard Nowak City Planning Director Richard W. Ruth R. W. Ruth Real Estate Joseph E. Schmid Executive Director - Secretary, Housing Authority of Erie Fred A. Sesler, Sr. President, Sesler Agency, Inc. Matthew Stegner County Planning Director BASIC FACTS AND COMMENTS For centuries, the relocation of families has been considered a private responsibility. Relocation of families in the face of disaster has been handled as a matter of charity. Public responsibility for relocation on any large scale is relatively new. It got its impetus in large cities during periods of housing shortage, when judges refused to evict families unless some evidence was produced that there were decent places to which the families might go. While this situation generated public concern about the relocation of families, it did not develop any effective mechanisms for dealing with the problem. Concerted effort to formulate comprehensive relocation procedures came into being with the passage of the Housing Act of 1949. Since then, concentrated attention has been focused on the problem. Although many procedures have been proposed and tested, no completely satis¬ factory answers have been found. In Erie, one relocation plan was developed and executed in connection with the Peach- Sassafras Redevelopment Project. While there have been some differences of opinion about the success of the operation, the Redevelopment Authority has made the determination that all eligible families have been relocated in permanent housing accommodations. The figures issued by the Authority are as follows: Total families relocated, 226. Of this number, 127 were white and 99 non-white. Indivi¬ duals relocated, 89 — 79 were white and 10 non-white. The relocatees were relocated as follows: Standard rental 61 (white) 27 (non-white) -39% Standard sales 31 (white) 9 (non-white) -18% Public housing 3 (white) 27 (non-white) -13% Substandard 13 (white) 23 (non-white) -16% Too far away 9 (white) 3 (non-white) - 5% Evicted 2 (white) 5 (non-white) - 3% Lost Family Status 2 (white) 0 (non-white) - 1% Whereabouts Unknown 5 (white) 5 (non-white) - 5% 247 Case Study Area No. E3 RELOCATION OF FAMILIES Twelve of these families were of such size that special accommodations were provided for them in public housing. There is no indication that the private housing market could provide such accommodations at prices which the families could afford. At least two more urban renewal projects are anticipated in Erie which will involve con¬ siderable displacement of families. Certain highway and other public improvement programs are likely to cause additional displacement. In some instances, displacement will affect fami¬ lies which have already been relocated from the Peach-Sassafras area. The total volume of persons displaced will be sizeable, but the relocation will take place over a period of months. During that time, vacancies and turnover in existing housing will make available accommodations in which most of the families can be housed. However, certain of the families may have to be placed in public housing. To make preparations for dealing with the volume of displacement, careful planning for relocation must be instituted in Erie. Failure to make the needed plans can create costly prob¬ lems for the community and interfere with future growth and development. COURSES OF ACTION Because the entire community, rather than just the Redevelopment Authority or the Housing Agency, must be concerned about relocation, courses of action probably can be best considered in terms of certain basic questions: 1. What activities may be undertaken locally which could involve displacement of families by governmental action? One activity certain to displace some families in Erie is the local portion of the Federal Highway Program. While the location of certain routes and connecting streets has not been determined, the certainty of some displacement persists. The urban renewal program in Erie is increasing its momentum. As more projects are undertaken, the volume of displacement will rise. In addition, as code enforcement is stepped up, more and more unfit housing will be closed for human habitation thus intensifying reloca¬ tion pressures in the housing market. Erie may experience displacement for other reasons. To stimulate local thinking about some of the possibilities, it may be well to suggest the following: A. Land acquisition for low-rent housing projects, power projects, and other purposes by public or quasi-public bodies which have the power of eminent domain. B. Rehabilitation projects under any publicly sponsored program which may displace families for a variety of reasons, including inability to pay increased rentals for improved accommodations. C. Eviction of families from low-rent public housing projects because their incomes have risen above established limits for continued occupancy. D. Military or other projects initiated by the federal government. 2. How many families are likely to be displaced by such action, and over what period of time? The problem of estimating displacement may become complicated if acquisition of property is delayed. There may be instances in which the tenants, originally assumed to constitute the relocation load, will have vacated the premises and totally different families, presenting totally different relocation problems, will be in occupancy at the time the government obtains pos¬ session. This can increase the difficulties of relocation far beyond what had been anticipated. 248 Case Study Area No. E3 RELOCATION OF FAMILIES To determine how many families will have to be relocated and how serious a problem they present the following information should be gathered about each family in residence at the time possession by the government is achieved: Number of persons per family Income per family Tenant or Owner White or non-White An estimate of the time within which the displacement will take place is important. If many families are seeking the same kind of accommodation at the same time, serious difficulties can develop. If families are displaced over a reasonably long period of time, accommodations may keep opening up through normal turnover of housing in the market and the demand for relocation assistance may be minimized. 3. What are the rehousing needs of these families likely to be? On the basis of information about families displaced, each locality should put together some rough estimates of the kinds of decent, safe and sanitary dwelling units which may be needed to facilitate rehousing. These estimates should be broken down as follows: A. Sales or rental B. Sales prices or rent per month (Classified by price ranges) C. Size of accommodations (Emphasizing number of bedrooms) D. Availability to families being displaced E. Location with respect to utilities, community facilities and public transportation. The facts about housing needs should be closely correlated with information about families to be displaced. Perhaps their preparation might be left to the same persons entrusted with the displacement estimates. Regardless of who prepares the estimates, consideration should also be given to the time within which the housing need will have its impact. 4. What existing housing resources are available, or may become available to meet the needs, over the indicated period of time? The realistic way to gather facts about housing with which to meet the need is to depend largely upon persons concerned with the provision of housing accommodations. Perhaps the best procedure is to call a meeting of such interested parties, including: large property owners, real estate brokers, representatives of local housing authorities or associations, veterans' or¬ ganizations, and the like. Persons at such a meeting might be asked to indicate how existing housing resources can be matched against the probable needs of displaced families. If the indi¬ cation is that a real problem exists, these persons should be asked to identify the difficulties and suggest steps to be taken to effect correction. Experience in many localities indicates that some of the following problems may arise: A. Lack of accommodations for large families. B. Lack of sales housing within the financial means of families. C. Lack of rental housing within the financial means of families. 249 Case Study Area No. E3 RELOCATION OF FAMILIES D. Accommodations not suitably located. E. Accommodations not available to the families displaced. While most of the above items are self explanatory, there may be need for special empha¬ sis on the significance of the word, "available". Sales practices and tenant selection processes in many communities serve to create more and better opportunities for some families than for others. Some families have found by experience that housing in locations which they desire fre¬ quently will not be made available to them. Where this condition exists, it can make relocation extremely difficult. While relocation will always have implications for citizens generally, it will continue to be a primary concern for specialists in this field. They will have to find ways of mobilizing the resources with which to solve the problems of the specific families affected. The special¬ ists must also be concerned about keeping the problems of relocation reduced to their simplest terms. For example, they must seek to have procedures established under which governmental agencies get immediate possession of any property they intend to acquire. While this may in¬ volve amendments to existing law in some states, it will prevent the repeated reoccupancy of premises which frequently occurs under existing acquisition methods. Without destroying legal rights of any property owners, immediate possession would restrict relocation rights to families in possession of accommodations at the time a project is initiated. There already exist in Erie many resources with which to meet the relocation problem. The Erie Real Estate Board maintains a central listing of houses for sale. Currently, more than 2,400 units of housing are available in a wide range of sizes and prices. The only possible prob¬ lem in connection with sales housing is the availability of these units without restriction as to race. While there is no similar source of information about rental housing, there seems to be general agreement that, for normal sized families which can afford to pay $50 per month for accommodations, no serious problem exists. Below $50 per month, the private market has little to offer. Public Housing is available for assistance in relocating qualified low-income families which may be displaced. However, even in public housing, there may be serious problems for large families. While temporary public housing is being used successfully at the present time, that housing is slated for demolition. Once it is gone, no facilities will be available for special cases. IMPLEMENTATION The immediate impact of relocation will be felt by the Redevelopment Authority of the City of Erie as it undertakes further urban renewal activities. The Authority will be seeking assistance from other organizations and agencies. Out of this situation would come the begin¬ nings of a relocation policy for the community as a whole. 250 CASE STUDY AREA NO. E4 IS MORE PUBLIC HOUSING REQUIRED? RESOURCE PERSONS Charles G. Barney Executive Director, Home Builders Association of N. W. Pennsylvania Howard W. McKinney Executive Director, Erie Community Relations Commission Leonard Nowak City Planning Director Richard W. Ruth R. W. Ruth Real Estate Joseph A. Schmid Executive Director, Secretary, Housing Authority of the City of Erie Fred A. Sesler, Sr. President, Sesler Agency, Inc. Matthew Stegner County Planning Director BASIC FACTS AND COMMENTS No over-all shortage of housing exists in Erie. Because unemployment is well below its peak, the total supply of housing is adequate and a sizeable number of dwelling accommodations is available for rent at prices as low as $50 per month. This does not mean that the housing problem of Erie has been solved. There continue to exist serious problems with respect to slums and sub-standard dwellings, dwelling units for large families, accommodations designed especially for the aged, and the availability of dwelling units for minorities. Public housing in Erie has been designed to help in the solution of all of these special problems. When the first federal public housing legislation was adopted in 1937, its stated pur¬ poses were as follows: (1) the elimination of unsafe and unsanitary housing conditions; (2) the eradication of slums; (3) the provision for decent, safe and sanitary dwellings for families of low income; (4) the reduction of unemployment; and (5) the stimulation of business activity. At the time Erie chose to participate in the public housing program, the City Council "found and determined that there exists in the City of Erie a large number of unsanitary and unsafe dwelling accommodations, which condition co-exists with severe lack of sufficient, safe and sanitary dwelling accommodations available to persons of low income." Thus, the prime objective of the public housing program in Erie was the elimination of unsafe or unsanitary dwelling units by demolition, condemnation, effective closing or compulsory repair or improve¬ ment, and the provision of a substantially equal number of newly-constructed dwelling units. At the present time, there are 1,375 units of public housing of which 764 units are for families of low income where the monthly gross rent is related to net income. Rent for these units ranges from a minimum of $25 per month to a maximum of $60.00, $65.00, $68.00 and $70.00 for 1,2,3 and 4-bedroom units. All utilities are included in the rent. Two hundred and ten units are for moderate income families, where the net rental for a 1, 2, or 3-bedroom unit is $45.00 per month, plus utilities. Two hundred units are for 1, 2, or 3-bedroom families with a rent of $37.50, $41.00 and $43.50 per month including a reasonable quantity of utilities. The remaining 200 units are for 2-bedroom families with a rent of $35.50 per month including all utilities. During the past year, the turnover in public housing averaged 30, or 2 1/2% per month, while applications were received at an average rate of 62 per month. Over-income families account for some of the turnover, while applicants with large families account for a large per¬ centage of the waiting list, which -- as of July 1, 1960 -- totaled 208,of which 89 were non-white. 251 Case Study Area No. E4 IS MORE PUBLIC HOUSING REQUIRED? In connection with the relocation of families from the Peach-Sassafras Project, the Erie Housing Authority, which operates all the public housing in Erie, secured a commitment for the construction of 126 additional units. None of these units has been constructed, although the Authority still hopes to put 122 units under construction during April, 1961. This project will contain 6 zero and 6 one-bedroom units for the elderly; 48 - 3-bedroom; 36 - 4-bedroom; and 26 - 5-bedroom units for large families. While it is true that many of the housing market requirements of the Erie area are being satisfied completely, there remain problems which the private industry seems unable to solve and for which the continuing need for public housing may exist. This is evident particularly in connection with the relocation of large families from the Peach-Sassafras Project. Twelve of the these families were so large that no accommodations could be found for them in either public or private housing. Public housing accepted them as its responsibility and made changes in its housing design which permitted each family to occupy two inter-connected apartments. This arrangement is still in effect and, because no other accommodations can be made available at the rents which these families are able to pay, 18 additional large families have been admitted as tenants of "combination units." Until some other solution is found, the continuation of public housing for these persons seems to be a policy which will not be reversed. If there is any need for additional public housing in Erie, it would seem to be in connection with special problems of housing which have not yet been solved and for which no private enter¬ prise solution seems possible. What these problems may be, and what requirements for further accommodations they may generate, are a matter of continuing study. COURSES OF ACTION There seems to be no common understanding of the problem of housing in general and public housing in particular in Erie. This makes a poor basis on which to try to establish any broad policy. While it is important for students of the problem of housing to continue their study of spe¬ cial problems and what can be done about them, such studies can scarcely hope to have practical effect unless they are understood and accepted by large numbers of persons. This implies that some machinery should be established in the community to make people aware of the problems which exist and possible solutions for them. Several mechanisms might be used to help develop courses of action which can contribute to effective programs. One course of action could be the creation of a local housing association in which members of the local real estate board and the home builders might join with City offi¬ cials, civic leaders and representatives of the Housing Authority to explore problems of common interest and try to reach agreement on what should be done about them. Another course of action might be for any one of the above groups to try to formulate a program on its own and then sell it to the other groups and to the public as well. This seems to be a rather hopeless prospect in view of the history of housing development and all the pressures which continuously are in competition for public attention and support. IMPLEMENTATION The first step toward effective action in this field should be the creation in Erie of some exploratory operation to determine whether or not any common ground can be found on which all groups interested in housing can move forward together. If such common ground can be found, the attainment of other objectives will be possible. 252 CASE STUDY AREA NO. E5 THE FUTURE OF PRIVATE HOUSING CONSTRUCTION RESOURCE PERSONS Charles G. Barney Executive Director, Home Builders Association of N. W. Pennsylvania Howard W. McKinney Executive Director, Erie Community Relations Commission Leonard Nowak City Planning Director Richard W. Ruth R. W. Ruth Real Estate Joseph A. Schmid Executive Director - Secretary Housing Authority of the City of Erie Fred A. Sesler, Sr. President, Sesler Agency, Inc. Matthew Stegner County Planning Director BASIC FACTS AND COMMENTS The controlling fact, with respect to the construction of new houses in Erie, is the high existing vacancy rate in older housing. At present, this rate is in the neighborhood of 8%. As long as that rate continues, property values and rentals will be depressed to the point where demand for new construction will be limited. At the present time in Erie, no large residential construction projects are underway. The building that is being done is on specific order, and not for speculative purposes. Most of this construction is in the suburbs. Very little open land exists in the City on which construction could be started. The greatest prospect for any extensive residential development within the City lies in the possibility of urban renewal projects in which the reuse of the land will be residential. Urban renewal could result in the rebuilding of entire neighborhoods, some of them close to the center of the City. One project, involving rehabilitation and construction of homes, is already under consideration by the Erie Redevelopment Authority. If such a project were to develop, neither the construction nor the financing by private redevelopers would present any insuperable problems. The prospect of increased renewal activities suggests that the largest volume of construc¬ tion work in Erie may be, not in new buildings but in the repair and rehabilitation of existing structures. With normal wear and tear on about 40,000 units of existing housing, and with the changes ordinarily to be expected both in size of families and in neighborhoods, the potential home improvement volume is great. The fact that much needed maintenance on many of these structures has been deferred, adds to the potential. The Federal Housing Administration has been of little help to the local construction indus¬ try. While that Agency has authority to act under special provisions of the law to assist with the private construction and rehabilitation of houses in connection with urban renewal, its actual field appraisals of older properties appear to be unrealistic. Local contractors and builders find the savings and loan associations to be more understanding and helpful. COURSES OF ACTION Market forces are, and will continue to be, the dominant factors in control of private con¬ struction in the Erie area. While the industry is prepared to collaborate with public bodies, particularly on such projects as urban renewal, the details of that collaboration have yet to be worked out. There are no clear courses of action to be followed. 253 Case Study Area No. E5 THE FUTURE OF PRIVATE HOUSING CONSTRUCTION IMPLEMENTATION One means of collaboration between architects, builders, realtors and mortgage bankers which gives promise of being helpful in improving the housing supply and creating activity for all of these organizations is suggested in connection with Case Study Area No. Fll, which deals with rehabilitation. 254 CASE STUDY AREA NO. E6 HOW IMPORTANT IS LOCAL TAX POLICY TO HOUSING? RESOURCE PERSONS Charles G. Barney Executive Director, Home Builders Association of N. W. Pennsylvania Howard W. McKinney Executive Director, Erie Community Relations Commission Leonard Nowak City Planning Director Richard W. Ruth R. W. Ruth Real Estate Joseph A. Schmid Executive Director - Secretary, Housing Authority for the City of Erie Fred A. Sesler, Sr. President, Sesler Agency, Inc. Matthew Stegner County Planning Director BASIC FACTS AND COMMENTS Practically every property owner in Erie County pays real estate taxes to his County government, City or local government and local School Board. The total amount of these taxes collected in the City of Erie in 1959 was $9,711,923. Of this total, industrial property paid $1,345,101; commercial property paid $1,813,216; and residential property paid $6,553,606. This total of six and a half million dollars in taxes on residential property represents a sharp increase in the tax penalty on home ownership. This is because tax rates have risen sharply while assessments have remained practically constant. In 1954, the tax millage for the City was 6 1/2; today that figure is 10 1/4. This is an increase of 57%. The School District had a tax of 8 mills in 1954; today the figure is 13 1/2 mills. This is an increase of 5 1/2 mills or 68%, Continued increases at the same rate could quickly put the home owners of Erie in serious tax squeezes. The combined City, County and school taxes, adjusted to 100% of full assessed value, are approximately 28.65 mills or $28.65 per thousand. This means that the owner of a $10,000 home is paying $286.50 per year, or almost $24 per month in taxes. If he rents the house, he must get that much each month from the tenant before he can start repaying his maintenance and carrying charges and begin to make a profit. On more expensive homes, the amount of the tax payment will, of course, be greater. The effect of these real estate taxes on residential properties in Erie may be summarized as follows: 1. Increased carrying charges to owners of residential properties. This tends to make home ownership more difficult. 2. Reduced net income to owners of rented and managed properties. In today's market in Erie, both sale prices and rents are going down. It is, therefore, impossible for most managers to raise rents to cover added taxes. Absorbing the taxes by management either reduces profit or results in less complete maintenance of structures or both. 3. Abandonment of prudent maintenance in the case of some marginal owners. This de¬ preciates their properties and forces lower assessments, thus helping to start a vicious cycle in which both the owner and the community suffer. The owner suffers from loss of value in his structures. The community suffers from the depreciation which affects not only the individual structure but also adjoining properties. 255 Case Study Area No. E6 HOW IMPORTANT IS LOCAL TAX POLICY TO HOUSING? COURSES OF ACTION The best possible remedy for the tax squeeze in Erie is an expanding local economy. If economic activity can be intensified, more jobs will be created, the demand for homes will in¬ crease, property values will go up, the burden of taxes will fall less heavily on the property owners and will interfere less with proper maintenance and repair. Another course of action, which has been used to stimulate both construction of housing on vacant land and improvement of older structures, is the removal of taxes on land improvements and the transfer of all real estate taxes to the land. This practice, in modified form, is now in use in Pittsburgh and Scranton. It allows an owner to make all the improvements on his property which are permitted by zoning regulations without any increase in taxes. A third course of action is to attempt to reduce the costs of local government. While over¬ all costs for all the services provided by government have been on the increase, there is hardly a government in which suggestions for retrenchment and economies cannot be made. This seems to be the case in Erie. Some of the possibilities will be suggested in the Chapter on modernizing local government. IMPLEMENTATION One of the best ways to deal with this problem is to make the citizens aware of the burdens created by taxes, and what they may do about them. Circulation of pamphlets such as TAXATION AND THE CITY by Richard Ruth, former Chief Assessor and now President of the Real Estate Board of Erie, can be very helpful in this connection. Some kind of a watchdog service, such as that provided by a bureau of municipal research or the City Affairs Committee of the Chamber of Commerce, should be active in every commun¬ ity looking into costs of government and insisting upon economy and efficiency in every public undertaking. Before any effort is made to shift the burden of taxes from real estate, some careful pre¬ caution must be taken to be sure that the community generally is aware of what is involved and is willing to support the change. Until such understanding has been achieved, any attempt to make changes can result in misunderstandings and difficulties which every community wants to avoid. 256 URBAN RENEWAL CATEGORY F CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY AREA NO. FI AREA NO. F2 AREA NO. F3 AREA NO. F4 AREA NO. F5 AREA NO. F6 AREA NO. F7 AREA NO. F8 AREA NO. F9 AREA NO. F10 AREA NO. Fll AREA NO. F12 AREA NO. F13 URBAN RENEWAL SECTION IS URBAN RENEWAL NEEDED? WHY IS AN URBAN RENEWAL PLAN NECESSARY? WHO SHOULD FORMULATE THE URBAN RENEWAL PLAN FOR A GIVEN PROJECT? THE IDENTIFICATION OF PROJECT AREAS FEASIBILITY OF RENEWAL PROJECTS THE LAND ACQUISITION PLAN THE LAND REUSE PLAN PROJECT FACILITIES PLAN PROJECT FINANCING WHAT PLACE SHOULD REDEVELOPMENT HAVE? HOW CAN NEEDED REHABILITATION BE ACCOMPLISHED? EXECUTION OF THE URBAN RENEWAL PLAN WHAT IS THE PLACE AND IMPORTANCE OF THE REDEVELOPMENT AUTHORITY? 257 CASE STUDY AREA NO. FI IS URBAN RENEWAL NEEDED? RESOURCE PERSONS John L. Corapi James A. Currie James B. Dwyer, Jr. William J. Flynn Arthur J. Gardner Thomas C. Hoffman Kenneth H. Ishler Joseph E. Meagher Sumner H. Nichols, Jr. Harold G. Reslink Gerald J. Weber Assistant Director, Redevelopment Authority of Erie President, Erie Foundry Company; Treasurer, Redevelopment Authority of Erie Attorney (for Redevelopment Authority) President, Bank of Erie Mayor, City of Erie Executive Director, Redevelopment Authority of Erie Division JVlanager, Pennsylvania Electric Com¬ pany; Chairman, Redevelopment Authority of Erie Executive Editor, Erie Times-News Vice President, Security-Peoples Trust Company President, Reslink and Wiggers Motors Com¬ pany; President, Greater Erie Chamber of Commerce Solicitor, City of Erie BASIC FACTS AND COMMENTS Obsolescence is accepted without question in automobiles, house furnishings, appliances, and garden equipment. The prudent family, like the prudent businessman, builds reserves with which to make periodic replacements and renewal. In urban renewal, a different set of circumstances has existed. While obsolescence has been recognized and while some rehabilitation and redevelopment has taken place on the initia¬ tive of private enterprise, the battle has been a losing one. More deterioration has developed thanhas been eliminated. No adequate reserves have built up. The result is demonstrated in Erie by tne evident deterioration of the Central Business District. A new and constructive measure for dealing with this problem in Erie has been the crea¬ tion of the Redevelopment Authority of the City of Erie. Although the tide of battle against ob¬ solescence has not yet turned, the early efforts of the Authority have constituted a bold new attack upon the problem. The Authority is making highly commendable efforts even though it is not now legally empowered to do everything that may be required, and does not have available at present enough funds to accomplish those things which it is empowered to do. How soon Erie can begin to win the battle of obsolescence will be determined by the extent to which the resources of the entire community can be mobilized for the fight. If enough re¬ sources can be mobilized, victory will result. Without the help of the entire community, even the tireless efforts of the established urban renewal agencies will not be able to bring about any great and continuing improvement. 259 Case Study Area No. FI IS URBAN RENEWAL NEEDED? COURSES OF ACTION In Erie, two important aspects of urban renewal are underway. One has to do with project operations which have been demonstrated by the Peach-Sassafras Project area. The other, and equally important aspect, is what is known as the Workable Program — the community-wide attack on slums and blight. The Workable Program is comprised of the following essential elements: 1. Housing Codes and Ordinances 2. Comprehensive community planning 3. Neighborhood analyses 4. Administrative organization 5. Financing 6. Housing for displaced persons 7. Citizen participation Erie's Workable Program has been in effect for several years. However, the program has been regarded by City officials more as a means of qualifying for federal financial aid for urban renewal projects than as a tool for the preservation of property values and a contribution to the growth and development of the community. Now that the Workable Program pattern is in existence, it should be improved each year as a basis for re-certification of the Program, and should be used as the surest means of pre¬ venting the spread of slums and blight. Until such implementation takes place, the benefits to be expected from the community-wide attack upon obsolescence will not be forthcoming for the City. So far as project activities are concerned, three different courses of action are possible. They may involve redevelopment, rehabilitation and conservation — or some combination of the three. "REDEVELOPMENT consists of the acquisition of all, or part of a project area, clearance of the site, installation of utilities and facilities necessary to prepare the land for reuse, and the sale of the land for redevelopment in accordance with a predetermined plan. This type of project generally results in completely new buildings on the land and, in some cases, in completely new land uses. It displaces most of the families living in the area. It is likely to affect a complete change of ownership of much of the property. "REHABILITATION is quite different. This process involves a minimum of acquisition of project land. It preserves as many as possible of the buildings in the area. But it re¬ quires the rehabilitation of the buildings and the upgrading of the area to eliminate slums and blight, and to prevent future deterioration. In any rehabilitation project, much of the structural improvement is accomplished by existing owners. Almost invariably, however, this private enterprise activity will be supplemented by public improvements in streets, parks, garbage and trash collection, and in a variety of other services designed to augment the efforts of the property owners. "A third type of project involves CONSERVATION of areas in which deterioration is threatening even though blight has not developed far enough to require redevelopment or rehabilitation. Conservation projects involve the upgrading of the entire area and the taking of positive measures to prevent deterioration. These projects depend for their success almost entirely on voluntary cooperation of home owners and occupants. The kinds of improvements required are normally above the minimum housing standards which can be enforced by law." 260 Case Study Area No. FI IS URBAN RENEWAL NEEDED? While City officials have the responsibility for implementing both the community-wide program and project operations, the effectiveness of their activity will be determined in large measure by public understanding and support. So far, the amount of this support has not been great. Public officials, particularly those connected with the Redevelopment Authority have taken the initiative. The general public has not understood fully what was being done or why. If citizens have shown any reluctance to support urban renewal activities, part of the reasons may be found in the fact that the subject is not completely understood even by those ac¬ tively engaged in it. Problems of great importance have yet to be solved. Patterns of coopera¬ tive action remain to be developed. Methods of mobilizing the total resources of the community need to be worked out. A most necessary course of action is to acquaint the people not only with the over-all need for renewal, but also with the specific problems which must be solved before urban renewal can become completely effective. In the remainder of this Chapter, some of those specific prob¬ lems will be described together with suggestions about directions in which solutions may be found. IMPLEMENTATION Each of the courses of action above is complementary to the others. None is in conflict. To a considerable extent, the more that is done about one of them, the easier it becomes to do something effective about the others. 261 CASE STUDY AREA NO. F2 WHY IS AN URBAN RENEWAL PLAN NECESSARY? RESOURCE PERSONS John L. Corapi James A. Currie James B. Dwyer, Jr. William J. Flynn Arthur J. Gardner Thomas C. Hoffman Kenneth H. Ishler Sumner H. Nichols, Jr. Assistant Director, Redevelopment Authority of the City of Erie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie Attorney, Redevelopment Authority of the City of Erie President, Bank of Erie Mayor, City of Erie Executive Director, Redevelopment Authority of the City of Erie Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Vice President, Security-Peoples Trust Company Harold G. Reslink President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS Much technical terminology has crept into community affairs with the advent of urban re¬ newal. One of the most significant phrases is "urban renewal plan". It has become one of the keys to the public renewal problem-solving process. Traditionally, private enterprise has brought about the renewal of old and obsolete parts of the community without benefit of any public plan. Under the private enterprise system, a group of men get together representing all the skills required to organize and execute a project. They begin a cautious investigation of the existing situation to determine whether or not their conditions can be met. One of their first questions concerns the possibility of acquiring the essential land at a total cost which will permit financing the rest of the project. If they find that all their conditions can be met, they execute firm commitments and undertake the work of pro¬ ject development. In recent years, the greatest impediment to the formulation and execution of private pro¬ ject plans has been difficulty in acquiring necessary land at prices which would permit profit¬ able operations. Few projects of any importance have been completed in Erie recently, largely because of this limitation. Evidence of the difficulties involved have already been cited in Case Study Area No. C 2 - THE CENTRAL BUSINESS DISTRICT. It is because of these barriers to effective action by private enterprise that the public proc¬ ess of urban renewal was developed. This public process has the unique advantage of being able to use eminent domain to acquire and redevelop areas requiring that treatment. Threat of ac¬ quisition can be used as a tool to secure needed improvement on the part of existing owners as the prices for permitting them to retain ownership. Changes in State and local laws were necessary to make possible this new use of eminent domain. Previously, the law has held that public acquisition of land must be for both a public 263 Case Study Area No. F2 WHY IS AN URBAN RENEWAL PLAN NECESSARY? purpose and a public use. Such legal limitation prevented public acquisition of property to be resold for redevelopment by private enterprise, even though such action might be necessary to achieve the highest and best economic use of the land. While the fundamental concept of eminent domain remains the same, and while traditional methods of condemnation for completely public land uses will continue to be used, laws recently enacted by most states have broadened the definition of public purpose as it applies to urban renewal. These new laws declare, in effect, that: 1. Public purpose will be served by the use of eminent domain, if necessary, to acquire lands in order to correct or to prevent the development of slums and blight, and 2. After this purpose has been served, the land so acquired can be sold or leased for private reuse. Obviously, such a relaxation of control over the use of eminent domain involves dangers of abuse. Special safeguards have to be set up to protect the public interest. One safeguard established in both federal and most state laws is the requirement that this privileged use of eminent domain be entrusted only to a specifically designated local public agency. In the case of Erie, this is the Redevelopment Authority of the City of Erie. Another safeguard provided by Pennsylvania law is the requirement that, before this desig¬ nated agency can exercise the right of eminent domain, the City Planning Commission must se¬ lect an area or areas in which the power is to be exercised, and the City Council must both ap¬ prove the area or areas and direct the local public agency to prepare an urban renewal plan for the area. This plan, when prepared, must be subject to at least one public hearing and receive approval from the Redevelopment Authority, the City Planning Commission and the City Council before the urban renewal treatment can begin. One widely accepted definition of an urban renewal plan is contained in Section 110(b) of the Housing Act of 1949, as amended, and reads as follows: " 'Urban Renewal Plan' means a plan, as it exists from time to time, for an urban renewal project, which plan (1) shall conform to the general plan of the locality as a whole, and to the workable program referred to in Section 101 hereof; and (2) shall be sufficiently com¬ plete to indicate such land acquisition, demolition and removal of structures, redevelop¬ ment, improvement and rehabilitation as may be proposed to be carried out in the urban renewal areas, zoning and planning changes, if any, land uses, densities, building require¬ ments and the plan's relationship to definite local objectives respecting appropriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities and other public improvements." To meet all the requirements of the federal and State law, the final urban renewal plan for a redevelopment project — the Redevelopment Plan -- must be made up of various sub-plans, as follows: 1. Land Acquisition Plan 2. Rehabilitation Plan 3. Property Management Plan 4. Relocation Plan 264 Case Study Area No. F2 WHY IS AN URBAN RENEWAL PLAN NECESSARY? 5. Demolition Plan 6. Site Improvements Plan and Right-of-Way Adjustments Plan 7. Land Disposition Plan 8. Land Reuse Plan 9. Cost Estimating and Financing Plan The above legal requirements inevitably make the public urban renewal process compli¬ cated and time-consuming. In the Peach-Sassafras area, although the urban renewal plan was prepared and approved more expeditiously than similar plans in many other cities, 17 months passed, and $77,636.76 was spent before the plan was authorized for implementation. Must the procedure be so complicated? Perhaps not. But before any simplification is attempted, there must be a clear understanding of the tests which the plan must be prepared to face. The possibility always exists that the legality or reasonableness of the plan will be chal¬ lenged in court. If that happens, the local public agency must be able to justify its uses of emi¬ nent domain as being legal in the most minute detail of its application, and as a complete protec¬ tion of the public interest in the project. This justification must be documented in accord with well-established legal standards. Clearly, no individual agency or authority should be allowed to set up its own standards. The courts must have a single standard which they apply to all the cases rising in their jurisdiction. Once that standard is set, each project must meet it even if this requires more substantiation than might at first seem reasonable. The City of Erie has no discretion if it wants to make use of a public urban.renewal proc¬ ess. It must follow both the letter and the spirit of the State law. If it wishes to receive finan¬ cial help from the federal government, it must also conform to all requirements of the federal law. While these legal requirements are strict, they are not a strait jacket. Once a local public agency has qualified for the use of eminent domain, there are many ways in which it can exercise discretion in the execution of a project. It is in connection with the use of discretion that new possibilities for project operations develop and new problems are presented. What some of these problems may be, and how any local public agency can prepare itself to cope with them most successfully, will be discussed in subsequent problems of urban renewal. COURSES OF ACTION So far as Erie is concerned, the actual formulation of the urban renewal plan for the proj¬ ects it may undertake will be the responsibility of the Redevelopment Authority of the City of Erie and the City Planning Commission. However, the importance of the actions they take, and the essentiality of public support for their decisions, emphasizes the necessity for people gen¬ erally to have a much wider knowledge of the urban renewal planning process that exists in the community today. IMPLEMENTATION Means of implementation for an urban renewal plan will be considered in the following case study discussions which deal with each of the sub-plans legally required as parts of an urban renewal plan. 265 CASE STUDY AREA NO. F3 WHO SHOULD FORMULATE THE URBAN RENEWAL PLAN FORA GIVEN PROJECT? RESOURCE PERSONS John L. Corapi James A. Currie James B. Dwyer, Jr. William J. Flynn Arthur J. Gardner Thomas C. Hoffman Kenneth H. Ishler Joseph E. Meagher Assistant Director, Development Authority of the City of Erie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie Attorney, Redevelopment Authority of the City of Erie President, Bank of Erie Mayor, City of Erie Executive Director, Redevelopment Authority of the City of Erie Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Executive Editor, Erie Times-News Sumner H. Nichols, Jr. Vice President, Security-Peoples Trust Company Harold G. Reslink Gerald J. Weber President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Solicitor, City of Erie BASIC FACTS AND COMMENTS Under existing law in Pennsylvania, formulation of an urban renewal plan is recognized as the responsibility of more than one agency. Before a plan has been completed to the point where eminent domain can be used to acquire land in a project area, the Redevelopment Authority, the City Planning Commission and the City Council must approve it. The first two of the above agen¬ cies have specified parts to play in the process of formulating the plan. While these requirements establish a minimum procedure to be followed in the formulation of an urban renewal plan, they do not insure the success of a project. For example, the proce¬ dures may be followed to the letter without mobilizing all the resources required for completing adequate planning. Much more help may be needed than is specified in official requirements. While the Peach-Sassafras Project is not typical — and is not suggested as one — it can be used as an indication of the kinds of help which the Redevelopment Authority found desirable in its efforts to form an adequate plan. The Authority applied to the Housing and Home Finance Agency for a federal survey and planning loan of $84,000. When the loan was granted, part of the funds were used to recruit the staff of the Authority. More of the funds were spent on con¬ tracts with consultants for making a preliminary project report, for the satisfaction of all require¬ ments for a Federal Loan and Grant application, for real estate acquisition appraisals, and for a market analysis of the project area. While these contracts were being completed, the Authority undertook to enlist the assist¬ ance of large numbers of citizens. It developed a program of citizen participation involving 267 Case Study Area No. F3 WHO SHOULD FORMULATE THE URBAN RENEWAL PLAN FOR A GIVEN PROJECT? several committees dealing with different aspects of urban renewal. For the most part, the persons selected to serve had no technical contribution to make to the project, but were con¬ cerned with or likely to be affected by it. Both the contract procedures and the citizen participation activities of the Redevelopment Authority were sharply in contrast with practices normally used by private enterprise in plan¬ ning projects. Private enterprise usually brings together only those resource persons who have some principal part to play in a project. They are the real estate operators, builders, finan¬ ciers, and users or managers of facilities in the completed project. Together, they represent the group which must make firm commitments before a private project can be assured of suc¬ cess. -If these principals reach an agreement, they usually are able to initiate a project with reasonable assurance that it can be completed. COURSES OF ACTION The Redevelopment Authority of the City of Erie followed a different procedure in its formulation of a plan for Redevelopment Project No. 1. It relied almost entirely on the patterns imposed upon it by the law. By its success, it proved that the pattern established by State and federal law can be made to work. The question which was not answered was the extent to which that legal process could be improved by the addition to it of the help which private enterprise could have provided. Although private enterprise cannot meet the requirements of the law and thus qualify for use of eminent domain, it can make a tremendous contribution to the public renewal process. The business community is the only available source of certain types of information which may be necessary for the public process, such as estimates of costs of both rehabilitation and the construction of buildings to be placed in redevelopment areas. Businessmen can help produce firm commitments about construction costs and potential users of structures, which not only strengthen urban renewal plans but also help to guarantee the success of local project operations. The most practical course of action seems to be one which, so far as possible, combines the public and private approaches to renewal. The purpose is to unite the benefits of the public process with the speed and economy of the private enterprise system. The best way to do this is to have the authorized public agency or agencies invite the participation of those representa¬ tives of private enterprise who are in a position to act as principals in project development. These include property owners, realtors, builders, financiers, and users of project land or newly-constructed buildings. To invite others than principals may introduce complications and is almost certain to cause delays. IMPLEMENTATION Because of the essentiality of public urban renewal to most redevelopment projects and because the Redevelopment Authority alone is permitted to exercise this power in Erie, that agency should continue to take leadership in the formulation of urban renewal plans. However, members of the Agency should recognize the limitations inherent to the public process and should make deliberate provisions for the full participation of those principals who have a specific contribution to make to the formulation of project plans. 268 CASE STUDY AREA NO. F4 THE IDENTIFICATION OF PROJECT AREAS RESOURCE PERSONS John L. Corapi Assistant Director, Redevelopment Authority of the City of Erie James A. Currie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie James B. Dwyer, Jr. Attorney, For Redevelopment Authority of the City of Erie William J. Flynn President, Bank of Erie Arthur J. Gardner Mayor, City of Erie Thomas G. Hoffman Executive Director, Redevelopment Authority of the City of Erie Kenneth H. Ishler Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority for the City of Erie Joseph E. Meagher Executive Editor, Erie Times-News Sumner H. Nichols, Jr. Vice President, Security-Peoples Trust Company Harold G. Reslink President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS In private enterprise renewal, the identification of the areas and the establishment of boundaries has not been difficult. The entrepreneurs select an area and begin trying to acquire it. If acquisition is easy, they buy as much as they can afford. If acquisition is difficult, they take what they can get and tailor their project accordingly. In public urban renewal, the situation is very different. The urban renewal plan has to be completed before acquisition can begin. That plan must include evidence which can be supported in the courts to show the exact boundaries of the area and why they were selected. The plan must also prove the eligibility of the area for the kind of renewal treatment proposed for it. In Pennsylvania, State law adds to the complications of identifying a project area by the following requirements: (a) An Authority shall prepare a redevelopment proposal for any area certified by the plan¬ ning commission to be a redevelopment area and for which the planning commission has made a redevelopment area plan. (b) The planning commission’s certification of a redevelopment area shall be made in con¬ formance with its comprehensive general plan, (which may include, inter alia, a plan of major traffic arteries and terminals and a land-use plan and projected population densities) for the territory under its jurisdiction. (c) The planning commission's redevelopment area plan shall include, without being lim¬ ited to, the following: 269 Case Study Area No. F4 THE IDENTIFICATION OF PROJECT AREAS 1. The boundaries of the area, with a map showing the existing uses of the real property therein; 2. A land-use plan of the area showing proposed uses following redevelopment; 3. Standards of population densities, land coverage and building intensities in the pro¬ posed redevelopment; 4. A preliminary site plan of the area; 5. A statement of the proposed changes, if any, in zoning ordinances or maps; 6. A statement of any proposed changes in street layouts or street levels; 7. A statement of the extent and effect of the rehousing of families which may be made necessary from the redevelopment area plan, and the manner in which such rehousing may be accomplished; 8. A statement of the estimated cost of acquisition of the redevelopment area, and of all other costs necessary to prepare the area for redevelopment; 9. A statement of such continuing controls as may be deemed necessary to effectuate the purposes of this act. (d) In conformity with such redevelopment area plan, the Authority shall prepare a pro¬ posal for the redevelopment of all or part of such area. The Authority may, if it deems it desirable, hold public hearings prior to its final determination of the redevelopment proposal. (e) The Authority shall submit the redevelopment proposal to the planning commission for review. The planning commission shall, within forty-five days, certify to the governing body its recommendation on the redevelopment proposal, either of approval, rejection or modification, and in the latter event, specify the changes recommended. (f) Upon receipt of the planning commission's recommendation, or at the expiration of forty-five days, if no recommendation is made by the planning commission, the Author¬ ity shall submit to the governing body the redevelopment proposal with the recommen¬ dation, if any, of the planning commission thereon. (g) The governing body, upon receipt of the redevelopment proposal and the recommenda¬ tion, if any,of the planning commission, shall hold a public hearing upon said proposal. Notice of the time, place and purpose of such hearing shall be published at least once each week for three consecutive weeks in a newspaper of general circulation in the field of operation of the Authority, the time of the hearing to be at least ten days from the last publication of notice. The notice shall describe that portion of the redevelop¬ ment area affected by the proposal, by boundaries and by City block, street and house number. The redevelopment proposal with such maps, plans, contracts and other doc¬ uments as form part of said proposal, together with the recommendation, if any, of the planning commission and supporting data, shall be available for public inspection at least ten days prior to the hearing. At the hearing, the governing body shall afford an opportunity to all persons or agen¬ cies interested to be heard and shall receive, make known and consider recommenda¬ tions in writing with reference to the redevelopment proposal. Case Study Area No. F4 THE IDENTIFICATION OF PROJECT AREAS (h) The governing body shall approve or reject the redevelopment proposal as submitted. The governing body shall not approve a redevelopment proposal unless it is satisfied that adequate provisions will be made to rehouse displaced families, if any, without undue hardship, or, if the municipality in which the project is to be located has filed its objections thereto. (i) Upon approval by the governing body of the redevelopment proposal, as submitted by the Authority, the Authority is authorized to take such action as may be necessary to carry it out. (j) The redevelopment proposal may contain the form of the redevelopment contract with the redeveloper selected and upon approval by the governing body of the proposal, as hereinbefore provided, the Authority is authorized to execute the said redevelopment contract. If the proposal does not contain the form of the redevelopment contract with the redeveloper selected, the Authority shall not execute a redevelopment contract with a redeveloper thereafter selected, until the said redevelopment contract shall have been approved by the governing body and found to be in substantial conformity with the proposal theretofore approved by the governing body. No additional public hearing notice or publication shall be required with respect to such approval. COURSES OF ACTION The above course of action is the legal and compulsory one for the Redevelopment Au¬ thority of the City of Erie. There may be situations in which it is necessary as a protection to the public interest. But there are certain to be other instances in which such a procedure con¬ stitutes an unnecessary and expensive method of documenting the obvious. Take the case of a project area which is clearly deteriorating, with boundaries sharply defined, with obsolete land uses, and no possibility of improvement short of complete redevelop¬ ment. The members of the Redevelopment Authority are completely capable of delineating the area, making the determination that it is eligible for renewal and conducting a public hearing to test the validity of their determination. If no objections develop, the Authority should be able to proceed with the project. If objections are raised, they should be disposed of before project activities are undertaken. Of course, the law in Pennsylvania and in most other states would have to be changed to permit the simplified procedure just outlined. However, the benefits, both in terms of time and money, would seem to be great enough to justify efforts to secure the change. No more documen¬ tation should be required than the minimum necessary to satisfy the courts that the public inter¬ est has been protected. For that reason, one course of action might be to seek an amendment to State law which would permit preliminary review, by a court of appropriate jurisdiction, of the selection and identification of a specific area by the local public agency. By securing such approval from a court, the much longer and more cumbersome procedure could be eliminated. There would be no lack of protection for the public interest. There would be great benefit to any project which could qualify for the abbreviated treatment. IMPLEMENTATION The only way to make progress in the simplification of present requirements for identifi¬ cation and selection of a project area is through enactment of new State legislation or the amend¬ ment of existing State law. This will require action, not by Erie or any other individual city, but by many cities in concert. State leagues of municipalities or of other public officials can be very helpful in this connection. 271 = CASE STUDY AREA NO. F5 FEASIBILITY OF RENEWAL PROJECTS RESOURCE PERSONS John L. Corapi James A. Currie James B. Dwyer, Jr. William J. Flynn Arthur J. Gardner Thomas C. Hoffman Kenneth H. Ishler Joseph E. Meagher Assistant Director, Redevelopment Authority of the City of Erie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie Attorney, Redevelopment Authority of the City of Erie President, Bank of Erie Mayor, City of Erie Executive Director, Redevelopment Authority of the City of Erie Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Executive Editor, Erie Times-News Sumner H. Nichols, Jr. Vice President, Security-Peoples Trust Company Harold G. Reslink President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS Many tests of feasibility can be applied to urban renewal projects. One is suggested by the question, "Does the project area meet the requirements of the State and federal law so that eminent domain can be employed if necessary and federal subsidies can be secured?" Another test may be a measurement of the extent to which the local government can afford all of the costs it may have to bear. The principal test of every project should be that of economic soundness. If the project cannot prove its economic worth, it should never be undertaken, regardless of all the special benefits it may confer. The test of economic feasibility will vary with different kinds of projects. For example: the test in rehabilitation has to be very different than that in redevelopment because of differ¬ ences in the factors involved. Generally speaking, the examination of feasibility has to be most exacting in redevelopment projects because larger amounts of money are involved and more factors have to be brought into alignment before the success of a project can be assured. The pamphlet, PLANNING URBAN RENEWAL PROJECTS, which is part of the COMMUNITY DEVELOPMENT SERIES, deals at length with problems of economic feasibility. With respect to redevelopment projects, it lists the following questions which should be asked and answered: 1. What is the estimated cost of the properties to be acquired? 2. What is the estimated cost of demolition, site improvement and supporting facilities if any are required? 273 Case Study Area No. F5 FEASIBILITY OF RENEWAL PROJECTS 3. What administrative and overhead costs will be involved? 4. What public land uses will be required, what will be their benefits, and how much will their development cost? 5. What new property values will be created in the area? 6. What assurance is there that financing will be available for private improvements? 7. What proceeds can be expected from the sale of project property? 8. What additional tax revenues can be expected from the project after completion and how can they help defray project costs? 9. What public capital investment will be required to make the project feasible, where will the funds come from and how will they be repaid? The Redevelopment Authority of Erie took great pains to establish the feasibility of the Peach-Sassafras Area. Under existing Pennsylvania law, the original selection of the area was made by the City Planning Commission. But the Redevelopment Authority tested the recommen¬ dation of the Planning Commission and satisfied itself that the project could be made successful. Before it proceeded, the Authority: A. Satisfied itself that the project area, as defined by the City Planning Commission, met the provisions of the State Urban Redevelopment law, and particularly the specifications of the "redevelopment area" as defined in that law. B. Accepted the determinations of the City Planning Commission that: 1. The Peach-Sassafras area should have first priority. 2. Existing land uses in the area should be converted to a more productive use. 3. The new use should be commercial. 4. A commercial use would be in accord with the General Plan for the community as a whole. C. Employed a nationally known research organization to make a marketability study of the area. This study confirmed the feasibility of the proposed urban renewal plan and helped greatly in the marketing program. The soundness of the study was demonstrated by the fact that agreements for the purchase of a considerable part of the area were completed before all the project land had been acquired. COURSES OF ACTION Nothing in the law on urban renewal can produce any guarantee of the economic feasibility of a project. The judgment of the members of the local public agency must be determining. How¬ ever, a number of courses of action are open to the members of an agency, which can provide a large measure of protection. Perhaps the simplest and the most desirable course of action is to secure firm assurances from ultimate users of land in a project area that they will buy or rent space in the project area on a basis which will guarantee the financial success of the project. Such commitments were 274 Case Study Area No. F5 FEASIBILITY OF RENEWAL PROJECTS the secret of success of the Golden Triangle development in Pittsburgh. This arrangement can provide complete proof of feasibility for any project. Another course of action is to negotiate firm deals with financially responsible promoters or developers of land who will agree to take space in a project area on some satisfactory basis and assume responsibility for finding suitable users. This course of action was used to a limited extent in the Peach-Sassafras area. A third course of action, where users cannot be found and "deals" with promoters are im¬ practical, is the positive effort on the part of the local public agency to select project areas in which substantial new real estate values will be created by urban renewal. If sizeable values can be created, a safe assumption should be that buyers will be forthcoming and that the project will be reasonably successful. IMPLEMENTATION Where users can be found or "deals" developed, there is no problem of feasibility and no concern about implementation. In the absence of such favorable circumstances, the local public agency should avail itself of all the help it can get. It should insist upon market studies such as those used by the Redevel¬ opment Authority of the City of Erie, economic base studies and the study of the availability of investment capital for the uses set forth in the urban renewal plan. In addition to these studies, the local agency should mobilize all the resources which may have any contribution to make to the successful completion of the project. This help from the community can be of assistance,not only in finding ways to make the project feasible, but also in creating understanding of the diffi¬ cult job with which the agency may be faced. This, at times, can be of the utmost importance. 275 CASE STUDY AREA NO. F6 THE LAND ACQUISITION PLAN RESOURCE PERSONS John L. Corapi James A. Currie James B. Dwyer, Jr. William J. Flynn Arthur J. Gardner Thomas C. Hoffman Kenneth H. Ishler Joseph E. Meagher Sumner H. Nichols, Jr. Assistant Director, Redevelopment Authority of the City of Erie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie Attorney, Redevelopment Authority of the City of Erie President, Bank of Erie Mayor, City of Erie Executive Director, Redevelopment Authority of the City of Erie Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Executive Editor, Erie Times-News Vice President, Security-Peoples Trust Company Harold G. Reslink President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS Land acquisition, as part of the urban renewal plan, has received relatively little public attention. This is largely because the subject has been considered to be highly technical and, therefore, a matter of concern primarily to experts. The law helps to establish this technical status for acquisition. Both federal and State laws, generally speaking, require that "fair market value" be paid for all property to be acquired in any project area. Determination of what constitutes a fair market value for a specific property is a matter of appraisal by highly reputable individuals, acting in accordance with procedures which have been established by law and recognized by the courts. Much more than appraisal procedures should be involved in the formulation of the land acquisition plan. Some of the reasons were suggested in the prior discussion of the Central Business District. More reasons have been demonstrated by projects initiated in many cities under the Housing Act of 1949, as amended. In Erie, one land acquisition plan has been prepared — that for the Peach-Sassafras pro¬ ject. That plan was in complete conformity to existing law and to the best appraisal techniques, The estimates were highly accurate and acquisition in accordance with the plan was successful. However, the actual figures on the cost of acquisition in that project can be used to illustrate some of the problems and procedures which can affect the cost and feasibility of other projects which the Redevelopment Authority may be asked to undertake. 277 Case Study Area No. F6 THE LAND ACQUISITION PLAN The acquisition figures of the Peach-Ssssaafras project area are expected to be as follows: Land $837,000 Structures $2,764,895 Total $3,601,895 Some of the important questions which can be raised about such acquisition figures are as follows: 1. How much of this acquisition price is recovered when the land in the project area is resold? The answer to this question requires certain additional figures. The resale price of the land is estimated to be $1,500,000. This price includes $503,700 spent on site improvements. However, since a large portion of the site improvement cost was allocated for the purpose of widening streets, improving traffic circulation for the City as a whole, and installing underground conduits to serve the center city area, and to produce revenue for the City, only about $153,000 should be charged directly against project land. (The City of Erie is one of two cities in the United States that owns its conduits and collects revenues for the same). This adjustment makes the estimated selling price of the project land approximately 34% higher than the cost of the land. This per¬ centage of recovery is very high and reflects great credit on the Authority. In many communi¬ ties, prices recovered for the land are actually less than the cost of the land. 2. Why was so much money paid for structures on which a substantial loss has to be taken? This question is hard to answer. Theoretically, most of the structures in a project area must be badly deteriorated before the area is eligible for urban renewal treatment. Then, in a redevelopment project, all or most of the structures have to be torn down in order to clear the land and make it ready for reuse. Since only the land is resold, complete losses have to be taken on the structures. Nevertheless, the law requires that the local public agency acquire the structures along with the land and pay "fair market value" for them. The problem is to deter¬ mine what, under these particular circumstances, constitutes "fair market value." Standard appraisal techniques have been used for this purpose. They are carefully worked out and well-supported. They produce estimates of value on which courts and public bodies rely completely. No criticism of any of these techniques is implied by any part of this discussion. The point is made, however, that application of these techniques, as required by State law, to slum areas — and particularly project areas about to be cleared and redeveloped — can produce special and windfall benefits to the owners of slum properties. This will be demonstrated by additional questions. 3. Would the prices have been reduced if the provisions of an adequate housing code had been in existence and enforced in the Peach-Sassafras area prior to acquisition? (This was an academic question in Erie because no such code existed at the time this parti¬ cular acquisition was begun). The answer has to be "Yes." In all probability, enforcement of an adequate code would have compelled the tearing down of some structures, thus eliminating whatever prices were paid for them at acquisition. Other structures were occupied at a density which would have been reduced by enforcement of an adequate code, thus lowering the income to the owner and probably affecting the valuation placed on the structure for appraisal purposes. 278 Case Study Area No. F6 THE LAND ACQUISITION PLAN 4. Could lower prices have been secured if better preparation for condemnation proceed¬ ings had been made? While in the Peach-Sassafras area, this does not seem to have been an important factor, national figures indicate that it can be highly important. In New York City, for example, jury awards in condemnation on the first ten redevelopment projects nearing completion there, as reported earlier in this workbook, approximate 155% of all carefully estimated fair market values. This constitutes the kind of windfall to owners of slum property which helps discredit, not urban renewal, but some of the legally imposed procedures by which renewal currently is accomplished. 5. Do established techniques of appraisal include as factors, in establishing fair market value, considerations such as replacement cost and the income derived from the prop¬ erty, even if some of that income is from occupancy which would be prohibited under any adequate housing code? While the answer has to be "Yes," there is no way to calculate how much this may add to the cost of project acquisition, or what could be done by the appraisers, if State laws were changed, to eliminate these factors from their appraisal of project properties. 6. Do prices paid for some slum properties constitute a windfall to their owners? Yes, necessarily so in many projects. Many owners of slum properties deliberately plan to own and operate slum properties so that they can exploit them in every possible way. Such owners try to find special situations such as racial ghettos or severe housing shortages in which they can charge rents above what a free market would permit. They provide minimum maintenance, and depreciate the properties as fast as possible. In many cases, they deliberate¬ ly allow their properties to fall below any adequate standards of decency, safety and sanitation. However, the moment these properties become subject to acquistiion for redevelopment purposes, some owners take advantage of every legal device to secure the highest possible prices. They resist the imposition and enforcement of codes. They fight to have their full in¬ come and the replacement cost of their dilapidated structures considered as elements in the determination of fair value. They take their cases to court if condemnation proceedings offer any possibility of excess awards. They make themselves a nuisance to the acquiring agency in the hope that their award will be increased. Available evidence suggests that their efforts are often successful. The same landlords then take advantage of federal tax laws, which were designed to en¬ courage legitimate economic activity in real estate, to further increase the amount of their wind¬ falls. In addition to the capital gains device, which was described in the discussion of the Cen¬ tral Business District, they frequehtly find ways to take advantage of the re-investment features of the law and to avoid payment of any tax whatever. This constitutes an abuse of the tax laws, which creates a windfall for these operators of slum properties and which tends to encourage increased exploitation of the slums. COURSES OF ACTION Problems of acquisition are so complicated, and some of the techniques which have to be used are so highly standardized, that years may be spent before any completely satisfactory pro¬ ceedings are devised for eliminating all unnecessary costs and windfall payments. The knowledge which is being accumulated by the Redevelopment Authority of Erie, and similar agencies in other parts of the country, will be helpful in developing solutions. 279 Case Study Area No. F6 THE LAND ACQUISITION PLAN In the meantime, the following courses of action can be undertaken with confidence that the results must benefit renewal projects and may ultimately contribute to complete solutions: 1. Adoption and enforcement of an adequate Housing Code. No community is justified in paying prices for property in any project area which have been increased because of violations of minimum standards of health and decency in housing. 2. The development of different technical standards, or the modification of existing standards of appraisal as applied to slum properties. This is ultimately a matter for the courts and for legislative action. It should be subjected to the closest scrutiny. 3. The federal government should review its entire taxing policy as it applies to urban renewal operations, and should eliminate all the windfall possibilities which exist. 4. Perhaps some rule of thumb might be developed that, if the value of the structures in a project area exceeds the value of the land by a fixed percentage, the project should be abandoned. This is not to say that such projects may not be worthy of redevelopment. It is to imply that, so long as much urban renewal is needed, attention should be focused on projects where cost of acquisition can be made low enough to prevent tremendous losses. If losses continue to run high, opposition to the public sponsored renewal program may develop. IMPLEMENTATION The lowering of acquisition costs has to be attacked on many fronts. Responsibility for bringing about improvement must be accepted by federal, State and City officials, by appraisers and other technical persons, and by citizens generally. The federal responsibility arises in large measure because of ill-advised tax practices as they apply to slum property profits, and because of the large sums of money made available for urban renewal with no adequate controls to prevent excessive project costs. Appraisers concerned about improvement of the techniques of their profession, should give most careful consideration to special procedures designed for exclusive application to urban renewal projects. Perhaps no completely adequate techniques can be developed. Perhaps the improvement has to be made within the conditions which exist in a project area before apprais¬ ers are brought in. However, the subject is so important that every possible consideration should be given to it. City officials can help most to reduce acquisition prices for slum land if they enact and enforce adequate housing codes and ordinances. While all cities which have Workable Programs are supposed to have taken such action, many cities — including Erie — could do much more to correct existing conditions in project areas and thereby reduce greatly some of the prices paid for slum properties. Perhaps the reason for the failure of all cities to do everything possible to reduce acquisi¬ tion costs is the lack of citizen understanding and support. This condition can be corrected only as citizens prepare to take effective action. One pattern for such action has already been sug¬ gested in the problems dealing with housing codes. Other patterns will be suggested in connec¬ tion with other problems. 280 CASE STUDY AREA NO. F7 LAND REUSE PLAN RESOURCE PERSONS John L. Corapi Assistant Director, Redevelopment Authority of the City of Erie James A. Currie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie James B. Dwyer, Jr. William J. Flynn Arthur J. Gardner Thomas C. Hoffman Kenneth H. Ishler Joseph E. Meagher Sumner H. Nichols, Jr. Harold G. Reslink Gerald J. Weber Attorney, for Redevelopment Authority President, Bank of Erie Mayor, City of Erie Executive Director, Redevelopment Authority of the City of Erie Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Executive Editor, Erie Times-News Vice President, Security-Peoples Trust Company President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Solicitor, City of Erie BASIC FACTS AND COMMENTS The land reuse plan for any public redevelopment project immediately raises some of the same questions which were raised in connection with the discussion of THE CENTRAL BUSINESS DISTRICT. One of the most important is whether or not users for facilities can be found. If new users can be found, a project can be made feasible. If such users cannot be found, the project is likely to be impractical. Considerable pessimism seems to exist with regard to the possibility of finding new users for the Central Business District in Erie. However, even more pessimism existed at the time the Peach-Sassafras project was undertaken. Therefore, it becomes highly significant to study the procedures followed by the Redevelopment Authority of the City of Erie in formulating its land reuse plan for that project and the results which were obtained. Prior to the development of a reuse plan (or Land Disposition Plan) for the Peach- Sassafras project, the following activity took place: 1. Recommended Land Use Plan for project was submitted by City Planning Commission. 2. A New Development Committee was organized for the purpose of establishing specific land uses and securing prospective users for same. This Committee included real estate brokers, merchants, industrialists, educators, engineers, architects, etc. 3. A detailed survey was conducted by interviewing all of the existing tenants and owners, merchants, wholesalers, industrialists, etc., to determine their needs and the possibil¬ ity of relocating in the area. 281 Case Study Area No. F7 LAND REUSE PLAN From these activites, a preliminary land development plan was formulated which has been refined and agumented by two (2) separate Market Analysis-Marketability studies. Evidence that the Authority planned well may be derived not only from the fact that 75% of the land has been sold but also because the development is proceeding along the lines envisioned in the early part of 1957. The recommendations of the principal land reuse study were as follows: 1. General Office Space Although there are virtually no vacancies in the major office buildings of Erie, the market for space is not strong and space rentals are very low -- below the economic optimum. There is no activity nor flexibility in the market. Demand for any appreciable amount of additional office space cannot be met in the principal office buildings, but presently there is no such demand. Fully modern, air-conditioned office space in an elevator type build¬ ing cannot be provided in Erie at current cost for less than $4.50 a square foot. There is not now a sufficient market in Erie to justify a building at such space rental. The alter¬ natives then are: A. Construction of small, single occupancy, one-story offices. B. Modernization of old walk-up space above rental stores. C. Provision of modern walk-up space in connection with new retail construction. Only alternatives "A and C" are practical for the Peach-Sassafras area. It should be possible to add air-conditioned walk-up space over retail stores at costs which make it economically rentable for $3.50 a square foot, to tenants requiring either small individual office spaces or large consolidated spaces which can be more efficiently planned to save money in operations. It is recommended that not to exceed 40,000 square feet of such space be planned for the second floor of commercial buildings in the projected shopping center, Ground floor space, which may ultimately be used for retail purposes, can be rented for offices temporarily. 2. Motel Analysis We find a market in the Redevelopment Area between Peach and State Streets for a Class "A" motel of 90 to 100 units, efficiently planned, attractively designed, and well- managed at competitive rates, assuming a good restaurant facility adjoining, and that Peach or State Street will be improved and continue to serve as the main access to the downtown center from the south and southwest areas, including outlets from the projected limited-access highways. 3. Medical-Professional Office Building We find substantial sentiment among members of the medical and dental profession in Erie for the establishment of a building where, under a single roof, patients may receive a variety of medical services, thus expediting diagnosis and treatment. We find further a substantial sentiment approving a site in the Peach-Sassafras Area for such a building, to such an extent that a number of physicians and dentists signify an interest in renting space. We, therefore, recommend that a building of 35 to 40 suites, with 70,000 to 80,000 square feet in gross floor area, on two floors with direct access to the first floor from State Street and direct access to the second floor from Peach Street to obviate elevator service, be built north of 18th Street between Peach and State streets. 282 Case Study Area No. F7 LAND REUSE PLAN 4. Retail Establishments We conclude that retail establishments in the subject area may be expected to attain a gross sales volume of $17,372,000 per year in 201,300 square feet of space, as herein¬ after detailed. 5. Bowling Alley and Restaurant We find a need in Erie for additional public bowling facilities, and recommend the con¬ struction of a modern 24-lane alley. We recommend, if architecturally feasible, that such an establishment be located on the ground floor of a building with entrance on State Street south of the New York Central viaduct; and that on the second floor, with an en¬ trance approximately at grade from Peach Street and a stairway entrance from State Street, there be located a restaurant with a total seating capacity of 350-400 persons, half of which would be in rooms which could be shut off when not required or used for private service. Kitchen space should be modularly arranged also for ready expan¬ sion. We recommend a limited amount of counter service space and a separate but adjoining bar and cocktail lounge. We suggest that the balance of the second floor (approximately 4,000 square feet) be leased for private club rooms. 6. We recommend that parcels 3 and 4 be developed with general purchase stores, wholesale distribution establishments involving display, and the offices and salesrooms of concerns selling produce, agricultural and horticultural products, technical serv¬ ices, such as plumbing, electrical, office machinery, industrial specialties, and so forth. 7. We recommend that Parcels 5 and 6 be consolidated and redeveloped in a planned shop¬ ping center, with the stores attractively and economically arranged and interconnected by a covered walkway. This center would include establishments purveying the various categories of convenience and shopping goods hereinafter detailed. Obviously, many important considerations lie behind conclusions of this sort. While detailed explanation of what is involved may not be justified in this brief statement, some con¬ sideration of the factors generally involved in project operations may be desirable. The fol¬ lowing comments on this subject are taken from the pamphlet, PLANNING URBAN RENEWAL PROJECTS, which is part of the COMMUNITY DEVELOPMENT SERIES: "No plan for any urban renewal project can provide adequate protection for the public interest unless it exercises complete control over the use and reuse of all land in a project area. Nothing less will insure the elimination of slums and blight from the proj¬ ect area. Nothing less will protect the future of the area. "As part of any land reuse plan, a map of the project area should be prepared to show: 1. Land uses permitted in the project area, including residential, commercial, industrial and public; 2. Similar land uses in areas adjoining the project area; and 3. Existing and proposed streets, utilities, community facilities, and zoning. "Also included in the plan must be a written explanation of controls for the various land uses indicated on the map. This explanation should describe the available protection from adverse influences, the new protection which will be Drovided. the means of access to all parts of the property and the amenities which will be available. 283 Case Study Area No. F7 LAND REUSE PLAN "In formulating the plan, the local public agency must be fully aware of its own limitations. It can buy land in the project area, install necessary streets and utilities, and charge their cost to the project. But it must sell the land for development by others. The actual reuse, therefore, will be made by others. Control by the agency can be exercised only through public regulations such as zoning, and covenants and restrictions written into deeds. "The land reuse plan must be acceptable to the actual developers of the project. It must also be realistic enough to produce good results in their hands. If the plan is not econom¬ ically sound, or if it does not work out satisfactorily to all concerned, it cannot accom¬ plish the purpose of urban renewal. "The land may be used for a variety of public or private purposes. The public uses may range from schools to police precinct stations, to fire houses, to parks and recreation areas or to "tot lots". Land for these purposes will be bought from the local public agency by the appropriate public body. Necessary structures will be erected. Before it can give commitments to take the land subject to the urban renewal plan, the public body should be reasonably certain of the availability of funds for both the capital investment and sub¬ sequent current operating costs. "The achievement of a proper balance between public and private uses may be particularly difficult. Few projects can be restricted exclusively to private uses, and few should be made exclusively public. If only public uses are involved, ordinary processes of public acquisition should be employed and the machinery of urban renewal should be avoided. "In some cases, reserving a high percentage of project land for public use can be jus¬ tified because expanding the functions of local government can confer public benefits and because certain public uses can enhance the value of private property both in and around a project area. In other cases, public use may serve only to take valuable property off the tax roll, without any compensating increase in other private values, and thus weaken, rather than improve, the financial position of the locality. "When a decision has been made that reuse of any part of the land in a project should be private, a new set of problems arises. Some of the private uses proposed may not be in the public interest. The local public agency, therefore, must find some source of authority and counsel which can help it to determine what the suitable private land use in a project area may be. "Some of the complications which may arise can be suggested by the following illustration. It concerns a project area in which one of the obvious private uses of land is housing. But that is not enough for a land-use plan. Members of the agency must determine whether high- rise apartments or single-family homes should be permitted. This involves questions about density of occupancy and also the demands which will be placed on community facil¬ ities. Too many dwelling units on the land might increase school population beyond the cap¬ acity of available classrooms or create a requirement for play space which would neces¬ sitate cutting down the size of the housing area and increasing public recreation space. All these factors, and many more, may be involved in a determination which the local public agency must make before it can formulate a land reuse plan. "Important differences betewen rehabilitation and redevelopment can affect decisions about the reuse of land. "In rehabilitation, for example, the local public agency may not have to acquire much of the land. But it must be sure that present owners who retain title to their property will cooper¬ ate in the improvement of their dwellings and in the up-grading of the neighborhoods. 284 Case Study Area No. F7 LAND REUSE PLAN The agency must be prepared to assist these owners with information about what they will be expected to do and how financial help, if necessary, can be made available. If the agency finds that the private owners are not cooperative, or cannot finance the improve¬ ment of their properties, the reuse plan may have to be changed to devote the land to some other purposes. "Before the agency makes any final determination of private land use in a project area, the members must be satisfied that a market exists for any of the land which must be ac¬ quired and resold. Until reasonable assurances can be given that buyers are willing and able to devote the land to uses specified in the plan, the agency cannot afford to consider its plans finished. When it has such assurance, the agency can proceed with confidence." COURSES OF ACTION In Erie, difficulties seem certain to arise in connection with almost every urban renewal project because of the surpluses which exist inhousing, in commercial facilities and in certain kinds of industrial facilities. Great care will have to be used to establish in advance that a market does exist for any particular reuse. This situation creates the finest possible opportunity for local ingenuity and imagination in the development of new concepts and new possibilities of land use. It is a challenge to arch¬ itects, real estate developers and builders in Erie to take the lead in formulating ideas and in making commitments for the actual reuse of the land as it becomes available. Local planners and potential users of the land also have a great opportunity. This local effort in the development of land-use plans is to be encouraged. Local individ¬ uals and organizations are most familiar with what exists in the community, and what is likely to be well received. They can operate with less overhead than outside organizations. This is particularly true of users of the land. They know what their markets are likely to be like, the volume of business they can expect and the prices they can afford to pay for space in new struc¬ tures. They can give the kind of firm commitments for use of space which are essential to make a project successful. Any local public agency, without this type of help from local sources, is in the unenviable position of having to depend on outside developers and promoters. These persons normally possess the resources and the ingenuity to put project land into use. But their interests are likely to be more toward making the project profitable than toward serving the long-term inter¬ ests of the community. Nevertheless, and in spite of the fact that they may be difficult to deal with, outside developers must be regarded as an important resource because they can frequently assure the success of a project. IMPLEMENTATION The obvious implication of the courses of action just outlined is that Erie, and every local¬ ity interested in urban renewal, should rely as heavily as possible on local resources in the for¬ mulation of land reuse plans. That such resources exist has been demonstrated by the coopera¬ tion of nearly 180 Resource Persons in the problem analyses which have made possible this work¬ book. The Redevelopment Authority is continuously improving its position so that it will be able to formulate more and more of its reuse plans with its own staff. Only as local Resource Persons prove inadequate, should the agency seek help from persons outside the community. Before asking for outside help, it may be advisable to consider deferment of projects for which outside help is necessary, in favor of other projects in which local groups can and will participate effectively. 285 c c c CASE STUDY AREA NO. F8 PROJECT FACILITIES PLAN RESOURCE PERSONS John L. Corapi James A. Currie James B. Dwyer, Jr. William J. Flynn Arthur J. Gardner Thomas C. Hoffman Kenneth H. Ishler Joseph E. Meagher Assistant Director, Redevelopment Authority of the City of Erie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie Attorney, Redevelopment Authority of the City of Erie President, Bank of Erie Mayor, City of Erie Executive Director, Redevelopment Authority of the City of Erie Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Executive Editor, Erie Times-News Sumner H. Nichols, Jr. Vice President, Security-Peoples Trust Company Harold G. Reslink President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS In the development of the Peach-Sassafras project, the Redevelopment Authority of Erie did very little about community facilities. This was because in the nature of the project, com¬ munity facilities were not required. This seems to have been characteristic of the growth and development of Erie. While community facilities have been provided, their availability has been incidental. They have not been planned or provided as a basis around which neighborhoods could be built, or as an essen¬ tial means of upgrading and improving the community. In some other cities, community facilities have played a much more important role. For example, one city which was interested in the rehabilitation of a sizeable neighborhood found that such rehabilitation would probably not be successful unless the entire neighborhood could be re-oriented. An existing school was the center of the operation. Additional land was added for park and recreational purposes. The facilities of the school were enlarged so that it could serve as the neighborhood center, with evening classes for adults and meeting rooms for many pur¬ poses. Thus re-oriented, the rehabilitation was successful and created both social and financial values for the community. Such re-orientation of neighborhoods is not the primary responsibility of local public agencies. It is rather the task of the school board, the City officials and the planning commis¬ sion. But the opportunity for such re-orientation might never arise except for the urban renewal program. When the opportunity does arise, the Redevelopment Authority must be prepared to take full advantage of it. 287 Case Study Area No. F8 PROJECT FACILITIES PLAN C COURSES OF ACTION A definite sequence of events seems to be indicated if proper community facilities plan¬ ning is to be accomplished within project areas. The first course of action is for the community to complete and up-date the planning of community facilities on a city-wide basis. While some community facilities planning has been done in Erie, additional studies, particularly of the relationship between community facili¬ ties and stable neighborhoods, should be completed. The second course of action is to make citizens generally familiar with the community facilities plan, why it has been developed and the help that it can give to the development of neighborhoods and the protection of real estate values. This is part of a continuing program which must be implemented if urban renewal is to achieve its full effectiveness. A third course of action is for the Redevelopment Authority to continue and intensify its existing practice of conferring with the school board, public officials and planning officials to determine the extent that facilities planned for a general area should be incorporated in the specific project plans of the Authority. Then the agency can begin to draw detailed plans taking full advantage of community facilities and giving the City the greatest possible benefit from every project. IMPLEMENTATION Because Erie has a special problem of neighborhood improvement, the community facili¬ ties plan for every renewal project should be made to contribute as much as possible to the solution of that problem. Before selecting project areas, the Planning Commission should consult with the school systems, the City officials and the Redevelopment Authority about what projects might be most helpful, and what community facilities should be provided in each. While such considerations should never be allowed to jeopardize the feasibility of a project, they should be given the full¬ est possible consideration. Quite apart from what the Redevelopment Authority may be able to do, civic leaders must assume the responsibility of supporting the planning commission in planning community facili¬ ties for project areas and in making citizens aware of the benefits of this kind of planning. C 288 CASE STUDY AREA NO. F9 PROJECT FINANCING RESOURCE PERSONS John L. Corapi James A. Currie James B. Dwyer, Jr. William J. Flynn Arthur J. Gardner Thomas C. Hoffman Kenneth H. Ishler Joseph E. Meagher Sumner H. Nichols, Jr. Assistant Director, Redevelopment Authority of the City of Erie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie Attorney, Redevelopment Authority of the City of Erie President, Bank of Erie Mayor, City of Erie Executive Director, Redevelopment Authority of the City of Erie Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Executive Editor, Erie Times-News Vice President, Security-Peoples Trust Company Harold G. Reslink President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS The financing of urban renewal projects will present problems of varying difficulty, de¬ pending on the circumstances under which each project is organized. Projects which create enough property values to insure a profit on the entire operation will present no serious prob¬ lem. However, projects which involve high losses will be difficult to finance even though sub¬ stantial reasons exist for undertaking them. A more or less standard approach to project financing has been developed by the federal government. It is based on the Housing Act of 1949, as amended. This standard pattern was fol¬ lowed in the financing of the Peach-Sassafras project in Erie. Perhaps by tracing this pattern, some understanding may be achieved of certain problems which seem to be involved. Three different kinds of financing are involved in the Peach-Sassafras project area, as follows: 1. Planning Advance The Redevelopment Authority of the City of Erie made application to the federal govern¬ ment and received a planning advance of $84,000 with which to make preliminary and final survey and planning studies of the area, and to prepare estimates of what costs would be involved in developing the entire area. The amount of money actually used was $77,636.76. This advance was repaid to the federal government from funds made avail¬ able for the execution of the project. These funds are considered an item of project cost. 289 Case Study Area No. F9 PROJECT FINANCING 2. The Definitive Loan This loan was secured from the federal government as a result of a loan and grant ap¬ plication, in which the proposed urban renewal plan for the project area was spelled out together with careful estimates of all the costs involved in the execution of the project. These estimates indicated that the gross project cost would run as high as $5,194,781. However, the Authority indicated that its borrowings for working capital could be ar¬ ranged so that this entire sum of money would not be involved in the project at any one time. The federal government actually authorized a direct loan of $4,165,831. This amount was calculated to enable the project to be carried to completion under the maximum demands which might develop. Actually, the Authority managed its affairs so success¬ fully that the biggest loan outstanding at one time was $1,967,000. The government promised to make this money available at the going rate of long-term money, which was 3-3/4%. Using the government authorization as a guarantee, the agency was able to bor¬ row the money in the short-term money market at an average cost of about 2%. At no time did the Authority receive any part of its project temporary financing direct from the federal government. 3. Capital Grants These funds were contributed by federal, State and City governments with which to pay the deficit which resulted from the operation of the project. The amount of this deficit, which is called net project cost, was estimated at $3,685,693. This amount was to be paid as follows: State Grants $ 650,000 City Grants $ 650,000 (This Grant was made up as follows: Cash $146,230 Non-cash $503,770) Federal Grant $ 2,457,128 The Peach-Sassafras project has not yet been completed in all of its transactions. Final figures will compel some adjustment in these estimates. However, for all practical purposes, the pattern of financing will not be altered. This pattern of financing can be made to work in any city where the necessary legislation exists to permit a locality to receive and spend federal funds for these purposes. The local pub¬ lic agency, once legally qualified, can obtain unsecured loans from the government for 100% of the money required to carry out a project, and a grant of federal funds which normally does not exceed 66-2/3% of the actual loss on the project. At the time final settlement is reached, funds from State and local sources must make up the balance of the loss. This formula creates a tremendous incentive for localities to undertake urban renewal. It has a seriously limiting factor, however, in the amount of federal and local funds which can be invested in it. Obviously, there is not enough tax revenue in the United States to renew all the areas which need it. Actually, on the generous basis on which the federal program is established, there is doubt that in certain cities, the federal program can clear old slums as fast as new slums are being created. This suggests the desirability of exploring at least two alternatives. One is ways of improv¬ ing the present formula of the federal program. The other is to discover substitute courses of action which produce some comparable result on some more widely applicable basis. 290 Case Study Area No. F9 PROJECT FINANCING COURSES OF ACTION Obviously, there are many ways to reduce costs of the present federal program. Perhaps the most acceptable involve reductions in project costs through such devices as the following: A. Enforcement by the City government of an adequate housing code. This would save money by eliminating in advance of acquisition both structures which are unfit for human habitation and the excessive occupancy of decent structures. B. Prevent unnecessarily high financial awards in condemnation proceedings through increased understanding of the program by the public and the courts, plus increased technical assistance from members of the real estate profession. C. Increase the non-cash contributions to projects by local governments in the form of facilities and services financed from current budgets — for example: Using existing City departments to help prepare project plans, thus minimizing the need of borrowing funds for that purpose. The records of health, police and building inspection departments can be used to help identify and delineate project areas. The precedent of city-financed Workable Programs proves the feasibility of such a procedure. D. Decrease losses on project operations, and thus reduce the amount of capital grants. To some extent, this can be accomplished by cost reductions in project operations. To an even greater extent, it can be accomplished through selection of project areas which have a high degree of recoverable property values. This is not to suggest that all projects should be made to show a profit. But it does im¬ ply the desirability for Erie, or any other city selecting project areas, to give primary place to those projects which promise minimum losses. The greater the extent to which losses can be restricted, the larger will be the number of projects which can be under¬ taken with the funds available. So much for improvements in the federal program. What about courses of action which may become alternates to the federal program? Do such alternatives exist? If so, how do they operate, and what advantages do they offer? One alternate course of action has been developed in Sacramento, California, and is now being used to help that City meet its local share of the costs of federally aided programs. In Sacramento, a procedure was developed to create a source of tax income (based on new values created in project areas) which could be pledged for loans to help in financing projects. This course of action was made legally possible by successful efforts of the California Leage of Municipalities to amend the State Constitution and to get special legislation enacted by the State Legislature. Here's how the pattern works. When an urban renewal plan wins final approval and a proj¬ ect is about to be undertaken, taxes paid to the City on project properties are frozen at the ex¬ isting level. Each year, the City continues to receive the same amount in taxes and to supply all essential services to the area. This represents a loss to the local public agency during the period when the project is under development. After the project has been completed and the new values have been created, a split is made in the taxes received from the area. The City con¬ tinues to receive for general City purposes the frozen amount. Taxes over and above the frozen amount are earmarked exclusively for repayment of the City's share of all money borrowed for 291 Case Study Area No. F9 PROJECT FINANCING undertaking the project. After project loans have been repaid, all taxes become available for general City purposes. The argument may be used that this procedure cannot be used extensively because the taxes reasonably to be anticipated from most project areas cannot possibly be adequate to repay the full loss which may be sustained. The answer may be that such projects should never have been undertaken, or that the losses should have been kept more completely under control. Cer¬ tainly, there are many projects on which losses can be kept within limits which make such a procedure feasible. What would have been the results if this method of finance had been applied to the Peach- Sassafras area? According to official records of the City, prior to redevelopment that area was paying in real estate taxes to the City, alone, a total — adjusted to present millage --of $22,500. According to estimates of the Redevelopment Authority, after the project has been com¬ pleted, the area will be paying to the City alone a real estate tax of $53,500. This means a net increase in income to the City of $31,000 each year. On that basis, twenty-one years would be required to pay all of the City's share of the project cost. To the extent that net loss on such a project could be reduced, the time could be shortened. Once repayment has been completed, these additional revenues become available for general City purposes. A very different procedure has been developed for the City of Indianapolis. The State of Indiana has enacted specific legislation for Indianapolis which permits the Redevelopment Com¬ mission of Indianapolis to borrow money with which to finance both the clearance of slums and the preparation of land for redevelopment. The borrowing is limited to one-half of one per cent of the assessed valuation of real property in the City. For purposes of repayment, the entire City of Indianapolis is made a special taxing district and the local government is authorized to levy on that district enough taxes annually to retire the amount of indebtedness which matures each year. No doubt, additional methods of financing can and will be found. The soundness of many will depend probably on the extent to which new property values can be created within each proj¬ ect area. This in turn will depend on the amount and kind of help which the local public agency can secure from local government and from private enterprise groups. The greater the extent to which financing can be made a complete local responsibility, the more carefully project oper¬ ations will be scrutinized and the more likely it will be that urban renewal project operations can be made self-supporting. IMPLEMENTATION Improvement in the financing procedures in urban renewal rests, not on what the federal government does, but on what localities can do. It is the communities which must enact and en¬ force housing codes. Community leaders must help improve public understanding of urban re¬ newal and use this citizen appreciation of sound governmental practices to prevent excessive condemnation awards. It is City and County governments which must so arrange their current budget so that much of their current expenditures count for renewal. States and cities must establish the tax laws under which future revenues from a project area can be pledged as secu¬ rity for loans which will permit the undertaking of the project. Urban renewal can never be made self-supporting if community leaders look upon it as a means of providing the community with something for nothing. So long as that psychology per¬ sists, community leaders will not insist upon the economies and efficiency which can be put into the program and which must be insisted upon if renewal activities are to serve the functions which clearly exists for them. Increasingly, every city will be compelled to undertake renewal activities. The federal funds which are used under the existing formula have to be collected from these cities and then 292 Case Study Area No. F9 PROJECT FINANCING returned for local use. To be sure, questions of capacity to pay are involved in the process. But there are also questions of the efficiency with which the federal subsidy program is oper¬ ated. On balance, it seems obvious that the community which can develop its own pattern, and make its renewal activities as near self-liquidating as possible, will in the long run be contrib¬ uting much toward balanced community development. To make renewal self-liquidating in any community involves much careful self-examination, a complete re-evaluation of present techniques for the acquisition of land in project areas, a new analysis of the overhead which is characteristic of public urban renewal projects, and basic deci¬ sions about the method of organizing and operating renewal projects. Some of the considerations which can help to simplify the problem of local project financing will be discussed in the remaining pages of this Chapter. 293 CASE STUDY AREA NO. F10 WHAT PLACE SHOULD REDEVELOPMENT HAVE? RESOURCE PERSONS John L. Corapi Assistant Director, Redevelopment Authority of the City of Erie James A. Currie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie James B. Dwyer, Jr. Attorney, Redevelopment Authority of the City of Erie William J. Flynn President, Bank of Erie Arthur J. Gardner Mayor, City of Erie Thomas C. Hoffman Executive Director, Redevelopment Authority of the City of Erie Kenneth H. Ishler Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Joseph E. Meagher Executive Editor, Erie Times-News Sumner H. Nichols, Jr. Vice President, Security-Peoples Trust Company Harold G. Reslink President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS The original Housing Act of 1949, gave attention exclusively to the redevelopment aspects of the renewal program. This Act assumed that the major weapon against slums was surgery — the removing of existing pockets of disease. The Act made available federal loans and grants with which to clear and redevelop whole project areas. Although renewal has been expanded to include rehabilitation and conservation, redevelop¬ ment continues to be an important part of the program. Redevelopment is the most expensive aspect of renewal in terms of both public and private investments. Redevelopment can also bring about the greatest increases in property values. It can completely transform areas and create entirely new uses for the land. Because planning is usually stressed heavily in the formulation of urban renewal plans for redevelopment projects, a different emphasis will be stressed here. It has to do with ownership of property in redevelopment areas. Ownership is deeply involved in every project. It has well-established legal rights and responsibilities. It is affected by almost everything which takes place in and around the proj¬ ect area. In turn, ownership can have a determining effect on what is done in a project area. Without the cooperation of the ownership interest, successful project operations may be almost impossible. Many different kinds of ownership may be involved in a single project. For that reason, the identification of some of the principal ownership interests may be desirable. The very act of iden¬ tification may help to indicate why their position can be controlling. 295 Case Study Area No. F10 WHAT PLACE SHOULD REDEVELOPMENT HAVE? FEDERAL RECOGNITION OF THE OWNERSHIP INTEREST Significantly enough, Congress, from the time it first enacted redevelopment legislation, recognized the necessity of ownership as part of successful project operations. In the Housing Act of 1949 and in all subsequent legislation, Congress has authorized use of federal funds to acquire property where necessary to carry out a project plan. Obviously, members of Congress were aware that certain project operations could be accomplished by ownership which would be impossible with any other device. Extensive use of ownership by a local public agency may not always be necessary. Fre¬ quently, the threat of legal acquisition may be sufficient to compel conformity to an established urban renewal plan for an area. But the power to acquire ownership by eminent domain has proven to be a necessary tool to get concessions from owners and make unnecessary the actual purchase of property. The failure of many local public agencies to appreciate the extent to which they are in¬ volved in real estate operations has been a retarding influence on urban renewal activities. Had they recognized themselves as potential large-scale owners and operators of real estate, they might not have concentrated so heavily on planning and other non-operating aspects of the program. THE PUBLIC OWNERSHIP INTEREST In almost every project, there will be a considerable public ownership interest. The City government, school board, a special agency such as a water or sewer district, or some other public body may have to buy land in a project area in order to supply essential public services and to carry out the urban renewal plan. In some instances, a large part of a project area may be devoted to public use. In no case, however, should an entire urban renewal project area be used for public purposes. Where total public use is desirable, local governments have other means of acquiring the land and should not be allowed to employ the complicated processes of urban renewal. At certain stages in some projects, the local public agency may be the temporary owner of part of the land in a project area. It has to acquire enough land to make the project possible. While the law permits some local public agencies to retain possession of the land and lease it, the usual practice is to sell the land and terminate the agency's connection with the project as rapidly as possible. While continuing ownership of at least the streets in a project area will be necessary, pub¬ lic ownership of other parts of the area may at times prove to be desirable. Schools and parks, particularly, enhance the value of property in the area. Public improvements can help stabilize an area and prevent its deterioration. THE PRIVATE OWNERSHIP INTEREST Some private ownership is involved in almost every urban renewal project. Each project has to be initiated because of private ownership — because existing owners cannot or will not take the steps necessary to eliminate blight and to restore a healthy neighborhood or area. Each project should end with the return of as much of the land as possible to private enterprise, but with controls designed to prevent future deterioration. Such reuse of project land is the greatest justification of the urban renewal process. Among the private ownership interests which are important to both the planning and execu¬ tion of any project are: continuing owners of land in a project area; builders, developers and real estate operators; and investors or owners and users. Their interests are not always the 296 Case Study Area No. F10 WHAT PLACE SHOULD REDEVELOPMENT HAVE? same. There are long-term interests as opposed to short-term interests. There is buying in the hope of quick profits from construction and sales of new buildings. There are expectations of enduring values to be derived from occupation and use. COURSES OF ACTION Before firm commitments can be made by either public or private groups to participate in the specific redevelopment project, the extent of the obligation incurred, and the capabilities of the principals to meet them, should be established. So far as public participation is concerned, the problem is comparatively simple. Govern¬ ment has a coercive power to levy taxes to pay for whatever commitments are legally made. It need only determine, therefore, that it has legal authority to become an owner in a project area and that the extent of its political and financial participation can be justified in relation to all other public expenditures. If the officials make a mistake and become too deeply involved, they may be replaced at some subsequent election. However, the commitment to the project, once made, will continue to stand. In private enterprise, the situation is much more complicated. The private owners does not have unlimited resources or the taxing power to make good on all his commitments. What appears to be a capability of meeting all obligations under a redevelopment commitment may evaporate if a new set of circumstances arises. Because of this private enterprise vulnerability, careful attention must be given to private reuse possibilities for projects in Erie and throughout the Nation. This must take into account the different ownership interests of groups which may become purchasers of the land. One of the groups interested in purchasing land is almost certain to be composed of builders. If they buy the land, it will be for the purpose of building structures and disposing of their complete interest as fast as possible. Ordinarily, builders cannot afford to have their funds tied up in a project for any long period of time. To leave any large amount of money in a project tends to make the builder an investor, and may leave him with a shortage of the risk capital he must have if he is to continue his building operations. The promoter has much the same interest. He is always looking for what he calls a "deal". The term is used to describe the difficult task of effecting a combination of construction and financing capabilities adequate to plan and carry out a complete project. The promoter who is successful in putting through a deal is usually well paid for his services. Generally, at some point in the project development, he has to take an ownership position and risk considerable sums of his own money in order to protect his position. When this involvement occurs, the promoter tries to get his money back as quickly as possible so that he will be able to take advantage of the next promising opportunity. In contrast to builders and promoters whose interest in owning land in redevelopment proj¬ ects is almost certain to be short-term, there exists a definite long-term interest. It involves those who hold a continuing title to the property and those who may hold mortgages against it. While both groups are concerned about the value which can be created quickly by project devel¬ opments, they are equally concerned about the future protection of these values. They can be depended upon to take the long look ahead. They can make a real contribution to community improvement. The local public agency, in dealing with these groups, is primarily concerned with the assurances that they can carry out any commitments they make for the redevelopment of all or part of a project area. This is almost certain to involve an investigation of the sources of in¬ vestment funds on which members of the different groups rely. 297 Case Study Area No. F10 WHAT PLACE SHOULD REDEVELOPMENT HAVE? SOURCES OF INVESTMENT FUNDS Undoubtedly, the organizations with the greatest financial competence to undertake redevel¬ opment are the large insurance companies. Some, like the Metropolitan Life Insurance Company, were engaged in redevelopment before public urban renewal was recognized. The New York Life Insurance Company was the first to purchase an entire public urban renewal project area. Evidently, the experience of these insurance companies with redevelopment has not been sufficiently satisfactory to encourage an extension of their ownership interest. Their business is selling life insurance and managing the funds of their policyholders. When they get into own¬ ership and management of real estate, they find themselves in a foreign field where profits may not be large enough to justify the risks involved. The companies may incur public disfavor which hurts insurance sales because of some of the policies they feel compelled to adopt in their ownership capacity. The possibility exists that union welfare funds, which constitute a large and growing source of capital, may find an outlet in urban renewal. Some of the needle trades have been very suc¬ cessful in their ownership of housing. The United Mine Workers Union has recently completed a very impressive program of hospital construction and ownership. Union officials have ex¬ pressed the opinion, from time to time, that welfare funds should be used in ways which not only preserve the integrity of the capital invested but also have social significance. Urban renewal is ripe for their intensive interest. The probability is that, for some years to come, the big volume of purchases of project land for private redevelopment will come from builders and promoters. They see the desirability of having sizeable tracts of valuable land assembled for them. ’They know how to mobilize the technical skills and the promotional resources to make a profit out of the operation. They can provide the leadership required to put the "deal" together. THE EQUITY PROBLEM The big obstacle to be surmounted by the builders and promoters is the provision of equity capital. Their ability to solve that problem has much to do with the feasibility of project operations. The problem can be stated simply. The total investment in any large real estate project seldom comes from a single source. Insurance companies or mortgage bankers may loan a sizeable percentage of the money required, but seldom 100%. Advancing all the money makes them owners and gives them responsibilities of management. By loaning only a portion, they com¬ pel the builders or promoters to get additional money which will be risk capital. Those who ad¬ vance the risk capital must make the project successful as the only sure means of recovering their entire investment. That part of the money put up by the builders or promoters, or by some other ownership interest, is called equity capital. It is in the vulnerable position. If mortgages on the property are foreclosed, there may not be sufficient money left to satisfy the equity holders. That is why equity money is hard to secure. All sorts of devices have been worked out to provide equity. In urban redevelopment, it has been suggested that equity be provided out of the new values created by project activities. This amounts to a proposal for public values created in the project to be appropriated for the benefit of private interests. Clearly, doubt must be raised about the legality of such action. Ob¬ viously, such practices could not be recognized as sound public policy. I 298 Case Study Area No. F10 WHAT PLACE SHOULD REDEVELOPMENT HAVE? No purchaser should be allowed to speculate on the public value created in the project land. Such public values should be reflected in the resale value of the land. None of the public value should be subject to further "write up" for benefits of the private purchaser. This would become another form of windfall. However, urban renewal can offer a new and very significant contribution to the solution of the equity problem. This arises because redevelopment, as part of urban renewal, is a public process. It requires an urban renewal plan in which reuse of the land is spelled out. Pre¬ sumably, it reflects some expression from users or potential users of prices they may be willing to pay. The very existence of such a plan may permit capitalization of the expressed interest of such users for the creation of values on which equity can be based. An equivalent of such a capitalization of private values takes place regularly in the develop¬ ment of commercial property, and especially shopping centers. For example, firm commit¬ ments from large chain stores to take space in a shopping center can assure the financial suc¬ cess of the entire project. That kind of commitment has long been recognized as a great help in the solution of equity problems. Within the framework of an urban renewal plan, this creation of private property values can be intensified. The benefit of FHA Section 220 mortgage insurance, with its "as if" apprais¬ als, can be applied to new as well as to rehabilitated housing. The action to which the City is committed under its Workable Program can help upgrade a project area, protect it from deteri¬ orating influences, and give added safety to investments made in the project area. Because every redevelopment project is different from every other one, no course or courses of action can be suggested which can be made generally applicable. Every project has to be studied as an individual problem, and a tailor-made solution has to be developed. IMPLEMENTATION Implementation of redevelopment is an individual problem for each project. 299 CASE STUDY AREA NO. Fll HOW CAN NEEDED REHABILITATION BE ACCOMPLISHED? RESOURCE PERSONS C. Robert Austin J. Robert Baldwin John L. Corapi James A. Currie James B. Dwyer, Jr. William J. Flynn George L. Fuessler Arthur J. Gardner Charles A. Hagmann George Y. Harris Thomas C. Hoffman Kenneth H. Ishler William P. Johnson, Jr. Joseph E. Meagher Joseph M. Metzler Sumner H. Nichols, Jr. Harold Redinger, Sr. Harold G. Reslink Joseph D. Restifo Richard W. Ruth Gerald J. Weber President, E. E. Austin and Son, Inc. President, Baldwin Brothers, Inc. Assistant Director, Redevelopment Authority of the City of Erie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie Attorney, Redevelopment Authority for the City of Erie President, Bank of Erie Vice President and Manager, First Federal Savings and Loan Association Mayor, City of Erie Hagmann's Realtors President, Harris Building Corporation Executive Director, Redevelopment Authority of the City of Erie Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Johnson, Gray and Associates (Architects) Executive Editor, Erie Times-News Secretary, Mutual Building and Loan Association Vice President, Security-Peoples Trust Company Redinger Builders; President, Erie Home Builders President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Hallgren, Restifo and Loop (Architects) R. W. Ruth Real Estate Solicitor, City of Erie BASIC FACTS AND COMMENTS The problem of rehabiliation as part of urban renewal is not well understood. Most persons like to continue thinking of rehabilitation in terms of individual structures. This involves an examina¬ tion of each structure to determine what should be done, the making of arrangements for a loan if that is necessary to pay for the improvement, and letting a contract to get the job done. 301 Case Study Area No. Fll HOW CAN NEEDED REHABILITATION BE ACCOMPLISHED? That process is completely voluntary. It is a very different thing from the mass re¬ habilitation which must be undertaken by communities all across the Nation. In mass rehabilitation, two distinct elements are involved. One is the improvements to structures which must be made by the individual owners. The other has to do with the up¬ grading of the entire area which can be accomplished only by the local government through the installation of improved public facilities and services. The logical way to reach agreements as to the amount of public facilities a city should provide, and the level to which individual owners will improve their structures, is to have representatives of these two groups negotiate. The City can promise to make certain im¬ provements, providing the home owners will also agree to make specific improvements. If the citizens are willing to do more, the City can commit itself to do more. Finally, an agree¬ ment is reached which constitutes the basic plan of rehabilitation for the area. Most communities do not rely upon such direct negotiation. Instead, they turn to a local public agency such as the Redevelopment Authority of the City of Erie. While such a local public agency can be very effective in exercising the right of eminent domain, or in developing special safeguards to protect the public interest, these services are not required for rehabilitation. The local public agency is not the proper body to attempt formulation of an urban renewal plan for a given rehabilitation project area. Most rehabilitation requires negotiation and cooperation, not dictation. There must be offer and acceptance by both the City and the property owners. The local public agency is not in a position to make any offer or to commit any of the parties to the program until specif¬ ically authorized to do so. When either the City or the home owners make any firm commit¬ ment to a local public agency about the kinds of improvements they will make in an area, they % lose their flexibility for bargaining purposes. What the City concedes, the home owners can accept without having to make great concessions with respect to the improvement of their structures. Althought the local public agency is not needed in mass rehabilitation, there is an ab¬ solute necessity for cooperation from the entire construction industry. That industry must come to the aid of the home owners before they can make any firm commitments about what they will do to upgrade their properties in a project area. Assume that selected representatives of the home owners, in negotiation with the City, agree on a level of improvement to which all the houses in a project area should be raised. This commitment is of doubtful value unless and until most of the property owners agree to make the necessary improvements to their particular properties. Assume further that each of the home owners wants to cooperate. However, before any firm commitments are made, each owner will want to know exactly what should be done to his home, how much it will cost and how it can be financed. Only after he has that informa¬ tion can he determine the feasibility of his participation. There is only one place from which this information can be secured — the construction industry. In some cities, the industry is not as well organized as it should be to provide this information. This is a job for the construction industry rather than for the entrepreneur. It cannot be left to individual contractors because of the possibilities of exploitation and because cost estimates on an individual home basis may be much higher than costs of the mass rehabilita¬ tion of many units. The industry in each locality must organize itself to deal effectively with these mass rehabilitation jobs. k 302 Case Study Area No. Fll HOW CAN NEEDED REHABILITATION BE ACCOMPLISHED? There are highly laudatory instances in which segments of the industry have faced this problem and have done some effective organization work with respect to it. Information centers have been established in several communities, and notably in Cleveland, Ohio, to which home owners can go for information. In those communities, local associations of architects have combined with local associ¬ ations of home builders to make available advice on the design of improvement, materials to be used and costs. This information service is made available at no cost to the home owner. Local savings and loan associations have formed cooperating groups to create pools of funds from which loans can be made to finance mass rehabilitation. Excellent examples of this cooperation are evident in the District of Columbia and Chicago. COURSES OF ACTION In Erie, the Redevelopment Authority has assumed responsibility for rehabilitation as well as redevelopment, and is now engaged in the exploration of a project in which rehabili¬ tation will play a large part. The desirability of continuing that administrative agreement will be considered in a subsequent problem. At this point, consideration of possible courses of action on rehabilitation will be confined to problems likely to be faced by individual home owners in trying to do their part in a mass rehabilitation project. REHABILITATION In rehabilitation, the biggest long-term problem is probably that of finding ways for the little home owners to borrow and pay back the money required for improvements which may have to be made in his dwelling. The urban renewal plan for the project area in which his property is located will tell him the improvements which must be made. He is expected to provide his own means of making these improvements. Sometimes, the improvements will be so minor that they can be paid for without borrow¬ ing. Sometimes, the improvements needed may be so extensive that a relatively large loan is required. In this latter case, the owner is almost certain to be faced with two types of inquiry. The first has to do with the structure — its basic soundness, the extent and cost of the im¬ provements needed, and the quality of the investment which will be created by rehabilitation. The second has to do with his personal credit rating. STRUCTURAL APPRAISAL The only responsible source from which the owner can get an appraisal of his structure is a contractor who will make a firm bid to rehabilitate the property. Until the contractor can give a firm bid, the property owner cannot know whether he can pay cash for the improvements or must borrow money to finance them. No appraisal of any existing structure can be completely accurate. The contractor can only guess at the structural conditions he will find when he begins work. He cannot be sure what part of a roof may be salvable until the actual work of rebuilding gets underway. He can¬ not tell about the soundness of foundations by probing. He can only guess about the condition of pipes enclosed in a partition. Under such circumstances, there may be great disparity in bids. One contractor may set his price high enough to cover all contingencies. Another may want the job badly enough to bid low, and hope that dilapidation will not be too severe. 303 Case Study Area No. Fll HOW CAN NEEDED REHABILITATION BE ACCOMPLISHED? Under the most favorable circumstances, the price is likely to be high. This is only partly because of contingencies. Partly, it is due to the piecemeal way in which most rehabili¬ tation is done. A typical job may involve all the skills used in the construction of a many- story building -- masons, plumbers, carpenters, plasterers and painters. The amount of work for each may be small. Nevertheless, each group of workers must travel to location, set up operations, clean up after its work and move out. More time may be consumed in pre¬ paring for the job than in the actual doing of the work. All this has to be reflected in the price. PERSONAL CREDIT When costs of rehabilitation become high enough to force an owner to borrow money, a personal credit investigation is almost certain to be involved. Frequently, it results in the owner being told that, if he is to get his loan, he must pledge as security all his personal re¬ sources in addition to the property. The person with the least resources is likely to have the heaviest demand made upon him. The large slum landlord usually will have no difficulty in borrowing whatever money he needs to meet rehabilitation requirements. It is the owner-occupant who will frequently find himself in trouble. He may have no commercial credit references. He may not be able to meet the requirements of the banks or the most reputable mortgage and loan companies. He may be forced to borrow from less reputable firms, and perhaps pay a high premium for the money. Some owners may find that they cannot protect their investment in their own home under any financial device readily available to them. They may require assistance from some source similar to the "Fight Blight Fund," of Baltimore, or through various kinds of help which can be put at their disposal by organizations in the locality. Unless such help is provided, they would not be able to participate in the rehabilitation program regardless of how much they believe in it and how willing they may be to cooperate. IMPLEMENTATION On August 26, a conference was held at the Greater Erie Chamber of Commerce at which representatives of the entire construction industry discussed, with the Pilot City Pro¬ gram officials, the extent to which they were prepared to cooperate in mass rehabilitation programs. Architects, builders, realtors and building and loan associations were represented. All expressed interest in cooperating if some proper basis could be found. Generally speaking, all groups were convinced of the impropriety of their attempting to organize rehabilitation programs. Each could be subjected to the criticism of acting from an ulterior motive. Each could be put in the position of spending money to initiate a rehabilita¬ tion activity only to have the project falter and fail. They saw no way in which any of the groups could initiate a project with full assurance that it would be successful. The architects, builders and realtors indicated that they would be willing to cooperate if the necessary financing for the home owners was assured. This seemed to place the problem squarely on the building and loan associations and the mortgage bankers. Building and loan associations left no doubt about their interest in cooperating. The City of Erie is built up to such an extent that the great volume of future mortgage loans is likely to be on older housing. The organizations which operate in Erie must be prepared to invest in this kind of property and must be concerned about protection of their investments during the life of the mortgages. The vital questions are: What areas should be selected for investment? How can investments once made be protected? Case Study Area No. Fll HOW CAN NEEDED REHABILITATION BE ACCOMPLISHED? The savings and loan representatives made clear their preference for areas in which some institution such as a church or school was the center of neighborhood activity and around which intense loyalty had been generated. The financiers indicated that, where such loyalties existed and where at least 50% of the residents would indicate a definite interest in improving their properties, they would be prepared to make mortgage loans on favorable terms. How is such an expression of intra-neighborhood interest to be brought about? Here again, the representatives of the construction industry are reluctant to take the initiative. They preferred to have some agency such as a church or school in the neighborhood, or even the city planning commission, or the Redevelopment Authority, take the lead. The City of Erie should be very much interested in taking advantage of this opportunity. It has many neighborhoods which are on the verge of deterioration. It has institutions such as churches and schools faced with serious problems about the future of neighborhoods of which they are a part. Many property owners are worried about their present holdings and would be glad to upgrade them, if they could be assured that their neighborhoods would cooperate to prevent deterioration in the vicinity of their homes. If real evidence of interest in improvement is demonstrated in any given area, the following kinds of assistance will be made available by the different segments of the con¬ struction industry: 1. Architects will volunteer to give advice to individual home owners about what should be done to rehabilitate their structures and to create enough additional property values to justify the improvement. This is with the expectation that fees will be paid for that portion of the construction work which is actually done. 2. Representatives of the home builders' organization will give firm prices for the improvement of individual properties. The benefits of mass rehabilitation will be passed on to home owners to keep prices low and to encourage volume of work. Other segments of the industry and the community will cooperate with the builders to discourage irresponsible contractors from operating in the area. 3. Realtors will be active in the area, arranging for the sale of properties where own¬ ers are not in position to cooperate but do not want to stand in the way of progress. Once the area becomes active, a considerable volume of real estate transactions can be expected. 4. Mortgage bankers will be prepared to make loans at reasonable rates in the area. The amount of the loans and the length of time for repayment of the loans, will be determined in each case by the condition of individual properties. However, the fact that the entire area is being upgraded, by the public and private improvements, is certain to assure better terms than could be made available to individual properties in less promising neighborhoods. At the moment, there is no prospective area ready for this kind of treatment in Erie. However, the existing situation is such that the need for it cannot be doubted and the possibil¬ ity of finding a promising area is very real. If such a project can be set up, it may become a demonstration which will set a new pattern for the entire United States. 305 * CASE STUDY AREA NO. F12 EXECUTION OF THE URBAN RENEWAL PLAN RESOURCE PERSONS John L. Corapi Assistant Director, Redevelopment Authority of the City of Erie James A. Currie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie James B. Dwyer, Jr. Attorney, Redevelopment Authority of the City of Erie William J. Flynn President, Bank of Erie Arthur J. Gardner Mayor, City of Erie Thomas C. Hoffman Executive Director, Redevelopment Authority of the City of Erie Kenneth H. Ishler Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Joseph E. Meagher Executive Editor, Erie Times-News Sumner H. Nichols, Jr. Vice President, Security-Peoples Trust Company Harold G. Reslink President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS Execution of the Peach-Sassafras project took 40 months. This is an excellent record in relation to most other federally subsidized projects. But it does not compare favorably with private enterprise redevelopment projects of similar magnitude. Indeed, most private proj¬ ects, if they took that much time, would have piled up an overhead expense so excessive that they would no longer be profitable and therefore feasible. Since almost every project is a combination of public and private activities, there should be the possibility of finding some way to coordinate these two kinds of activity on a basis which will be constructive for both. This coordination would involve combining the safe¬ guards necessary to protect the public interest with the speed and efficiency essential to pri¬ vate enterprise operations. Past difficulties in effecting a successful combination of the two have arisen largely because one aspect of renewal has been emphasized at the expense of the other. For example, in federally subsidized projects, the emphasis on planning has often been excessive. Local public agencies have been encouraged to spend excessive time and money on project planning done by experts who know little about private development. These experts, as the record shows, have formulated plans which were completely impractical and which had to be redone before project operations could be successfully completed. The way to correct this over-emphasis on planning is to make each urban renewal plan show not only the activities to be undertaken but also how they can be completed expeditiously. So far as possible, each step in the process should be identified together with the principals who will be responsible for its accomplishment. Provision should be made for coordination of the efforts of all the principals in a team effort to complete the project. 307 Case Study Area No. F12 EXECUTION OF THE URBAN RENEWAL PLAN Also included in the execution of the plan should be a carefully timed schedule of proj¬ ect activities. Deadlines should be set and met. No local public agency can execute an urban renewal plan by itself. The actual execu¬ tion must be done by the property owners, who take or keep title to the land and who spend the money necessary to make the improvements required by the plan. The proper function of the local public agency is to facilitate, not to interefere with or make unreasonable demands upon the owners. The execution of the plan for any project has many parts. Each part should be, not only planned, but also organized carefully to permit its execution. COURSES OF ACTION Under existing law, the execution of any urban renewal plan becomes the primary re¬ sponsibility of the local public agency. It alone has the authority to make special use of eminent domain, to formulate urban renewal plans and to develop public urban renewal projects. To increase the effectiveness of the local public agency, new legislation may be needed. For example, the law would have to be amended to permit the quick taking of land as suggested in the discussion of Case Study Area No. E3 - RELOCATION OF FAMILIES. Such quick taking statutes exist and are being used by some State Highway Departments. In addition to changes in the law, new patterns of action can be developed by communities for the improvement of the renewal program. These include the emphasis on ownership dis¬ cussed in connection with Case Study Area No. F10 and the cooperation of the construction indus¬ try emphasized in consideration of Case Study Area No. Fll. Because public renewal activities continue to present new problems, every project is a test of existing procedures and an opportunity for the development of new courses of action which will improve project execution. Every community should be expected to make contri¬ butions to improved techniques. IMPLEMENTATION Urban renewal is so highly technical that implementation of it must be largely the work of experts rather than citizens generally. This means that the staffs of local public agencies must be improved constantly. It also requires the accumulation of experience in renewal by private enterprise representatives so that they may increase their participation in renewal activities and also increase their contribution to the local renewal program. CASE STUDY AREA NO. F13 WHAT IS THE PLACE AND IMPORTANCE OF THE REDEVELOPMENT AUTHORITY? RESOURCE PERSONS John L. Corapi James A. Currie James B. Dwyer, Jr. Assistant Director, Redevelopment Authority of the City of Erie President, Erie Foundry Company; Treasurer, Redevelopment Authority of the City of Erie Attorney, Redevelopment Authority of the City of Erie William J. Flynn President, Bank of Erie Arthur J. Gardner Thomas C. Hoffman Kenneth H. Ishler Joseph E. Meagher Mayor, City of Erie Executive Director, Redevelopment Authority of the City of Erie Division Manager, Pennsylvania Electric Company; Chairman, Redevelopment Authority of the City of Erie Executive Editor, Erie Times-News Sumner H. Nichols, Jr. Vice President, Security-Peoples Trust Company Harold G. Reslink President, Reslink and Wiggers Motor Company; President, Greater Erie Chamber of Commerce Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS The Redevelopment Authority of the City of Erie is the spearhead of the entire community attack on urban renewal problems. As such, it is pioneering in a field of great importance. It will require solid backing for its work. Very careful consideration must be given to the total problem of urban renewal and the actions necessary to deal successfully with all its aspects. Examination of the total program of urban renewal will indicate that the Redevelopment Authority does not have, and cannot be given, the responsibility or the resources with which to deal with all the aspects of the total renewal problem. Implementing all the elements of the Workable Program is completely beyond the con¬ trol of the Redevelopment Authority. Redevelopment and rehabilitation require public and private activities which the Authority can try to generate, but which it is in no position to command. Regardless of how a local public agency gets its money, or the quantity of funds it may have at its disposal, large amounts of additional funds will also have to be invested in any renewal proj¬ ect by other public interests and by private participants in the development activities. The fol¬ lowing illustrations are examples: The first involves land in a project area which, according to the urban renewal plan, is to be cleared and redeveloped as the site for a public school. Before the plan can be carried out, the school board must buy the land and finance construction of the school building. The local public agency cannot prudently include the school in its plan unless it has definite assurance from the school board that the land will be bought and the school constructed within some rea¬ sonable time. 309 Case Study Area No. F13 WHAT IS THE PLACE AND IMPORTANCE OF THE REDEVELOPMENT AUTHORITY? Another illustration has to do with redevelopment by private enterprise. Frequently, private enterprise redevelopment involves new and expensive construction which can be made available only with the aid of mortgage financing. The local public agency is not a party to such mortgages, and yet the agency must be sure that mortgage funds are available before its plans for private reuse of the land can be completed. A third illustration is concerned with rehabilitation. An individual home owner may be involved in the improvement of his property. The local public agency can suggest what he should do, but the agency cannot tell him who should do the work or how much it will cost. The home owner must go to a contractor for a bid on the work, and, if needed, to a bank or finance company for a loan. Until he has exact cost figures, he will not know whether he can afford to cooperate. The community of Erie must be prepared to deal with all these problems, both on a proj¬ ect and on a community-wide basis. To the extent that the community can provide the leader¬ ship that is needed, provision for it should be promptly made. COURSES OF ACTION One course of action is for the community to wait until specific problems develop and then attempt to set up some organization suitable for dealing with each problem. This approach is likely to result in more instead of fewer agencies and to produce a division of responsibility and confusion in operations. Inefficient and inadequate effort will almost certainly be the prod¬ uct of an approach which waits for problems. Another course of action is based on the assumption that housing and urban renewal are fundamental and continuing problems of the locality and that some organization adequate for dealing with them must be set up. The functions of such an organization would include the formu- ^ lation of a Workable Program, the development of tools of good urban renewal administration such as housing codes, zoning and effective planning and project development. Coordination of all these activities must be carefully planned and a mechanism for implementation provided. Increasingly, as the importance of this problem is being recognized throughout the United States, cities are beginning to create the office of housing coordinator, or renewal coordinator. Some cities which have experienced this kind of control, have seen the need for going even further, and are establishing full-fledged departments of housing and urban renewal within the city government. Technical staff personnel having all skills necessary to deal with all aspects of housing and urban renewal, are made available to these departments. While this arrangement raises problems of relationships with the health department, building inspection department, planning commission, parks and recreation department and other agencies, it does provide a recognition of the importance of urban renewal in balanced commu¬ nity development. Once an over-all agency has been created to help organize and coordinate this important segment of community activities, cities do not reverse themselves and return to any lesser organization. Instead, they seem always to continue toward a better organization, headed by an administrator who has what amounts to cabinet status in the city administration. IMPLEMENTATION While Erie has made progress in the development of both City-wide activities and project operations, it should not assume that it now has an adequate organization for dealing with its urban renewal problems. Erie should prepare itself to provide leadership for all the housing and renewal activities which will be necessary before the improvement certain to be required for its future growth and development can be provided. Erie should plan, perhaps in connection with the inauguration of the New Charter in 1962, to have the equivalent of a complete department of housing ^ and urban renewal. 310 LOCAL GOVERNMENT CATEGORY G CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY CASE STUDY AREA NO. G1 AREA NO. G2 AREA NO. G3 AREA NO. G4 AREA NO. G5 AREA NO. G6 AREA NO. G7 AREA NO. G8 AREA NO. G9 AREA NO. G10 AREA NO. Gil AREA NO. G12 AREA NO. G13 AREA NO. G14 AREA NO. G15 AREA NO. G16 AREA NO. G17 AREA NO. G18 AREA NO. G19 AREA NO. G20 AREA NO. G21 AREA NO. G22 AREA NO. G23 LOCAL GOVERNMENT SECTION ADMINISTRATION STABILIZING THE PRINCIPAL SOURCES OF REVENUE THE PROBLEM OF HOMESTEAD EXEMPTION NEW SOURCES OF CURRENT INCOME CAPITAL IMPROVEMENTS FINANCING IMPROVING ASSESSMENT PRACTICES SPECIAL ASSESSMENT PROCEDURES POLICE FIRE PUBLIC HEALTH HEALTH AND MEDICAL CARE FACILITIES PUBLIC WORKS PARKS AND BEAUTIFICATION RECREATION AND PLAYGROUNDS WELFARE AND RELATED SOCIAL SERVICES EDUCATIONAL SERVICES HIGHER EDUCATION LIBRARY DEVELOPMENT MASS TRANSPORTATION AND PARKING ANNEXATION METROPOLITAN GOVERNMENT DOES NEED FOR MORE HOME RULE EXIST? CITIZEN PARTICIPATION PROCESS 311 CASE STUDY AREA NO. G1 ADMINISTRATION RESOURCE PERSONS Arthur J. Gardner Mayor, City of Erie Eugene D. Graney City Clerk Irvin H. Kochel Director, Behrend Campus, Pennsylvania State University. Dr. Thomas R. Miller President, Edinboro State College Reverend Wilfrid J. Nash President, Gannon College Gerald J. Weber Solicitor, City of Erie BASIC FACTS AND COMMENTS Under the present form of government in Erie, administration is a many-headed thing. Each commissioner is the head of his own department. To a considerable extent, he manages it as he sees fit. There is no single person or office who attempts to establish common policy for all the departments of the government. Perhaps the best way to suggest some of the problems inevitably raised by such a situation is to consider just three of the many elements of good administration. They are: Finance, Purchasing and Personnel. FINANCE Under the present form of government, there is no central and impartial source of re¬ sponsibility for deciding how City money will be spent. Instead, there are the Mayor and four Commissioners, each of whom is responsible for the administration of a single de¬ partment. Naturally, each is more concerned with opportunties to improve the services of his department than of other departments. Since there is never enough money to do every¬ thing that all the commissioners might desire, the decisions about what cuts are to be made are likely to be determined by the Commissioners on the basis of departmental interests rather than the best interests of the City as a whole. Sound financial administration calls for a single, fully-responsible official who makes deci¬ sions on an over-all basis. Such an arrangement is contemplated in the new form of govern¬ ment for Erie. PURCHASING Each Commissioner is now permitted to do purchasing for his department largely as he sees fit. The result is that very little centralized purchasing is done. This prevents the effi¬ ciencies which can be attained by a professional staff of experts in purchasing, using stand¬ ard specifications and seeking out the best merchandise at the lowest available price. The waste involved in the present system of purchasing, however well-intentioned it may be, is considerable. PERSONNEL Erie, in common with all cities, has problems of recruitment, training, and retention of able employees for a wide variety of important public services. If efficient service and good morale are to be developed a professional personnel agency must be created within the City administration to establish and maintain a merit system for all employees. This has not been done. As a result, different commissioners have different systems with respect to both recruitment and training. The City does not secure the best possible employees or get the best possible service from them. 313 Case Study Area No. G1 ADMINISTRATION These three illustrations have been used to emphasize the inadequacies of the present administrative system in City Hall. This is said without any criticism of the individuals who presently hold elective offices. It is the system, rather than the individuals, which is at fault. A real opportunity for increasing the efficiency and economy of the City government is presented in the New Charter, which goes into effect January 1, 1962. Unquestionably, there are possibilities of effecting important economies and efficiencies. Some of them will be sug¬ gested in the pages which follow. These improvements will not automatically come about because of any change in govern¬ ment. Improvements must be the result of careful planning and of specific provisions for good administration. Widespread public support for these improvements is needed. The citizens of Erie must be made aware that many important problems of administra¬ tion are not solved by the New Charter. Indeed, new and additional problems may be created from conflicts which can develop between the New Charter and the Third Class Cities Code. These possible conflicts must be anticipated and resolved before January 1, 1962. COURSES OF ACTION Immediate action is necessary to protect the interests of the citizens of Erie in the future administration of the City government. That action could be taken in many forms. A Citizens' Committee on Efficiency and Economy might be established. Technical experts might be re¬ tained by the City to make investigations and suggest the exact procedures to be followed in setting up administration under the new form of government. Local colleges and universities could be asked to make available the services of their political scientists to help set up an adequate administrative program. Whatever pattern is decided upon, the facts should be developed in substantial detail, and people generally should be made aware of them. Procedures, which can be followed to achieve efficiency and economy, should be formulated and publicized. At the election in November, 1961, when some of the officials under the new form of government will be selected, candidates could be asked to commit themselves with respect to their support of these sound courses of action. IMPLEMENTATION One course of action seems to offer such promise that arrangements for its initiation are now in process of completion. It is based upon initiative of the Mayor. He plans to call a con¬ ference in the near future, to which he will invite two groups of persons. The first group is composed of the heads of Behrend Center Campus of Pennsylvania State University, Gannon College and Edinboro State College, who have already indicated an interest in exploring how much,of a contribution can be made by their institutions. In these institutions may be found the technicians who can formulate the administrative patterns which are needed. The second group will be composed of local representatives in the State Legislature, the City Solicitor and individuals who made distinguished contributions to the development and adop¬ tion of the New Charter. These persons might serve in an advisory relationship to the techni¬ cians in suggesting problems on which to work and methods of reaching acceptable solutions. 314 This conference could result in agreements on procedures to be instituted immediately for both the clarification of basic questions involved in the change-over of government, and the initiation of moves which could be made to assure economy and efficiency. No other implementation should be attempted until the results of this conference are known. 315 COMPARATIVE REVENUES. CITY OF ERIE 0> d & "a 4 ) « I X 0 u a> w 3 0 Q> H 0) w 1) o .55 to T> C J 3 D w 0< < 2 o PQ o -3 << n 2 -pa |s 1 >